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 $945,000 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $120,000, $60,000, and $420,000, 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 Finished goods Cost of goods sold Total: Under-applied manufacturing overhead $ b. Prepare a journal entry to record the disposition of the underapplied manufacturing overhead.