Underapplied and Overapplied Manufacturing Overhead

Injection Molding Services uses a job-order costing system. The account balances at the end of the period for the product cost-related accounts are as follows:

Raw Materials inventory $300,000

Work in Process inventory 500,000

Finished Goods inventory 600,000

Cost of Goods Sold 900,000

Manufacturing Overhead

(credit) 90,000

Required

Prepare a journal entry to close the manufacturing overhead account assuming that the amount ($90,000) is material.