Exercise 5-13 Applying Overhead; Journal Entries; Disposition of Underapplied or Overapplied Overhead [L04, LO5, LO7] The following information is taken from the accounts of Foster Corp. The entries in the T-accounts are summaries of the transactions that affected those accounts during the year. Manufacturing Overhead (a) 428,000 (b) 470,000 Bal. 42,000 Work in Progress Bal. (c) 117,000 222,000 127,000 470,000 820,000 (b) Bal. 116,000 Finished Goods (d) 874,000 Bal. (c) 178,000 820,000 Bal. 124,000 Cost of Goods Sold Cost of Goods Sold (d) 874,000 The overhead applied to production during the year is distributed among the ending balances in the accounts as follows: Work in Process, ending Finished Goods, ending Cost of Goods Sold $47,000 70,500 352,500 Overhead applied $470,000 For example, of the $116,000 ending balance in Work in Process, $47,000 was overhead applied during the year Required: 1. Identify the reasons for entries (a) through (d). Item (a): Item (b) Item (c) Item (d). The company allocates any balance in the Manufacturing Overhead account to the other accounts in proportion to the overhead applied during the year that is in the ending balance in each account. Prepare the necessary journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry allocation of over applied overhead to the other account on the bases of amounts of overhead apply during the year in the ending balance during each account. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 View general journal Clear entry Record entry The company allocates any balance in the Manufacturing c oplied during the year that is in the ending balance in each ansaction/event, select "No journal entry required" in the View transaction list Record the entry allocation of over applied overhead to the other account on the bases of amounts of overhead 1 apply during the year in the ending balance during each account. journal entry has been entered Note Record entry Clear entry