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 $$882,000$ and that at year$-$end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $$112,000,$ $$56,000,$ and $$392,000,$ 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 Answer

Finished goods Answer

Cost of goods sold Answer

Total: Answer

Under$-$applied manufacturing overhead $Answer

b$.$ Prepare a journal entry to record the disposition of the underapplied manufacturing overhead