A company's Factory Overhead account shows total debits of $$663,000$ and total credits of $$686,300$ at the end of the year.

Compute the under$-$ or overapplied overhead.

Prepare the journal entry to close the balance in the Factory Overhead account to Cost of Goods Sold.

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Prepare the journal entry to close the balance in the Factory Overhead account to Cost of Goods Sold.

Journal entry worksheet

Record the entry to close the balance in the Factory Overhead account.

Note: Enter debits before credits.