When jobs are completed, the total cost of the job is recorded as a debit to Finished goods and a credit to Work in process. When jobs are completed, the total cost of the job is recorded as a debit to Finished goods and a credit to Work in process. During 2012, a company incurs $500,000 of manufacturing overhead costs and allocates out $492,000 of manufacturing costs. Overhead costs have been underallocated. Overallocated manufacturing overhead occurs when the manufacturing overhead allocated to work in process inventory is less than the amount actually incurred