Sloan Manufacturing Corporation applies manufacturing overhead on the basis of of
direct labor cost. An analysis of the related accounts and job order cost sheet indicates that
during the year total manufacturing overhead incurred was $ and that at yearend
Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included
$$ and $ respectively, of direct labor incurred during the current year.
a Determine the overapplied manufacturing overhead at yearend assume it is significant
Overapplied manufacturing overhead $
b Prepare a journal entry to record the disposition of the overapplied manufacturing
overhead.
