Journal Entries for Factory Overhead- Huang Company manufactures toys. It keeps a factory overhead account where actual factory overhead costs are recorded as a debit, and a factory overhead applied is recorded as a credit. At the end of the month, under- or overapplied factory overhead is calculated and transferred to the cost of transactions. Make appreciate general journal entries to record factory overhead and factory overhead applied, and to close the under- or overapplied factory overhead to the cost of goods sold account. Jan.1 Paid rent, $1,000. Jan. 10 Paid electricity bill, $250. Jan. 15 Paid repair expense, $1,500. Jan. 21 Vacation pay for machine operator, $500 (Wages Payable). Jan. 31 Depreciation expense for the month, $450. Jan. 31 Factory overhead applied was $3,500. **Entry for underapplied Factory Overhead should be: Debit. Cost of Goods Sold, $200