Exercise 7-31 Prorate Over- or Underapplied Overhead (LO 7-3) Aspen Company estimates its manufacturing overhead to be $625,000 and its direct labor costs to be $500,000 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 $195,000. Job 2-2, which was completed, but not sold at the end of the year, had actual direct labor costs of $325,000. Job 2-3, which is still in costs. work-in-process inventory, had actual direct labor costs of $130,000. Actual manufacturing overhead for year 2 was $800,000. Manufacturing overhead is applied on the basis of direct labor Required Prepare an entry to allocate over-or underapplied overhead to Work in Process, Finished Goods and Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Answer is complete but not entirely correct. No Transaction General Journal Debit Credit Applied manufacturing overhead 12,500 2,500 3,750 Work-in-process inventory Cost of goods sold Finished goods inventory Manufacturing overhead control 6,250 9