Exercise 3-8 (15 minutes) 1. Item (a): Actual manufacturing overhead costs incurred for the year. Item (b): Overhead cost applied to Work in Process for the year. Item (c): Cost of goods manufactured for the year. Item (d): Cost of goods sold for the year. 2. The journal entry to close the balance in the Manufacturing Overhead account to Cost of Goods Sold is: Cost of Goods Sold 70,000 Manufacturing Overhead. 70,000 3. The underapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold based on the percentage of total overhead applied during the year that resides in each account as of the end of the year: Using these percentages, the journal entry would be as follows: Exercise 3-8 (15 minutes) 1. Item (a): Actual manufacturing overhead costs incurred for the year. Item (b): Overhead cost applied to Work in Process for the year. Item (c): Cost of goods manufactured for the year. Item (d): Cost of goods sold for the year. 2. The journal entry to close the balance in the Manufacturing Overhead account to Cost of Goods Sold is: Cost of Goods Sold 70,000 Manufacturing Overhead. 70,000 3. The underapplied overhead is allocated to Work in Process, Finished Goods, and Cost of Goods Sold based on the percentage of total overhead applied during the year that resides in each account as of the end of the year: Using these percentages, the journal entry would be as follows