Applied vs. Actual Manufacturing Overhead Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 130% 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 $210,000 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $30,000, $20,000, and $150,000, respectively, of direct labor incurred during the current year. a. Determine the over-applied manufacturing overhead at year-end (assume it is significant). Applied Manufacturing Overhead Work in process $ 39,000 Finished goods 26,000 Cost of goods sold 195,000 Total: $ 260,000 Over-applied manufacturing overhead $ 50,000 b. Prepare a journal entry to record the disposition of the over-applied manufacturing overhead. Description Manufacturing overhead General Journal Debit Credit 50,000 0 Work in process inventory + 0 4,239 x Finished goods inventory 0 0 x Cost of goods sold 0 0 x