Southern Rim Parts estimates its manufacturing overhead to be $400,000 and its direct labor costs to be $1,000,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $59,000 for Job 301, $84,000 for Job 302, and $145,000 for Job 303. For the year, actual manufacturing overhead was $429,000 and total direct labor cost was $840,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows: Work-in-process inventory $ 40,320 Finished goods inventory 94,080 Cost of goods sold 201,600 Required:

Prepare an entry to allocate the under- or overapplied overhead.

Record the Journal Entry