If the factory overhead is overapplied, then the adjusting journal entry to close the factory overhead account includes a: (Check all that apply.)

Hie, the question is missing a list of options;

However the important steps to approach the questions are explained below.

Overhead is Over-applied when : Applied Overheads > Actual Overheads

The amount of overapplied overheads usually adjust the Cost of Goods Sold as follows :

Cost of Goods Sold (debit)

Overheads (credit)

This entry ensures that the costs of sales are not understated !

Alternatively the over-applied overheads can be adjusted to the Cost of Sales and other Inventory balances at the end of the period in pro-rata (Weight of their total) as follows

Cost of Goods Sold (debit)

Finished Goods Inventory (debit)

Work in Process Inventory (debit)

Raw Materials Inventory (debit)

Overheads (credit)

answer: kevoto

explanation: be healthy

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