A company's Factory Overhead account shows total debits of $630,000 and total credits of $676,000 at the end of the year. Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead 51 Prepare the journal entry to close the balance in the Factory Overhead account to Cost of Goods Sold, Prepare the journal entry to close the balance in the Factory Overhead account to Cost of Goods Sold. View transaction list Journal entry worksheet 5