Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the redetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Journal entry worksheet Close underapplied overhead to COGS. Note: Enter debits before credits. Determine the predetermined overhead rate using estimated direct materials costs