Duck Commander estimates its manufacturing overhead to be $601,200 and its direct labor costs to be $501,000 for year 2. Aspen worked on three jobs for the year. Job 2-1, which was sold during year 2, had actual direct labor costs of $203,250. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $406,500. Job 2-3, which is still in work-in-process inventory, had actual direct labor costs of $67,750. Actual manufacturing overhead for year 2 was $825,200. Manufacturing overhead is applied on the basis of direct labor costs.

Required:

Prepare an entry to allocate over- or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold.

Record the Allocation of over or underapplied overhead

Transaction	General	Debit	Credit