Fairfield Company applies manufacturing overhead to products at a predetermined rate of $54 per direct labor hour. Its actual manufacturing costs for the most recent period are summarized here: 1. Prepare the journal entry to close the Manufacturing Overhead account balance to Cost of Goods Sold. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Record the transfer of manufacturing overhead account balance to cost of goods sold. Note: Enter debits before credits