A manufacturing company applied $400,000 of overhead to its jobs during the year. Actual overhead costs incurred during the year equal $425,000. Which of the following journal entries correctly adjusts over-or underapplied overhead? Assume the adjustment amounts are not material). Credit the Cost of Goods Sold for $25,000 and Debit the Factory Overhead for $25,000 Credit the Work in Process Inventory for $25,000 and Debit the Factory Overhead for $25,000 Debit the Cost of Goods Sold for $25,000 and Credit the Factory Overhead for $25,000 Debit the Work in Process Inventary for $25,000 and Credit the Factory Overhead for $25,000