Applied vs. Actual Manufacturing Overhead Davis Manufacturing Corporation applies manufacturing overhead on the basis of 150% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $472.500 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $60,000, $30,000, and $210,000, respectively, of direct labor incurred during the current year a. Determine the under applied manufacturing overhead at year-end (assume it is significant). Applied Manufacturing Overhead work in process $ 60,000 Finished goods Cost of goods sold 30,000 X 21,000 Total: $ 472,500 Under-applied manufacturing overhead $ b. Prepare a journal entry to record the disposition of the underapplied manufacturing overhead General Journal Description Debit Credit work in process inventory # Finished goods inventory # Cost of goods sold 60,000 X 21,000 X Manufacturing overhead 472,500 x