Textron Company has applied $982,975 of overhead into production on Jobs in the Work in Process account. Actual overhead at the end of the year is $980,250.

Was the factory overhead under or over-applied?

What is the adjustment necessary to dispose Textron factory overhead balance at the end of the year?

Question 23 options:

	$2,725 Underapplied. The entry to adjust is: Cost of Goods Sold 2,725 Factory Overhead 2,725
	$2,725 Overapplied. The entry to adjust is: Factory Overhead 2,725 Cost of Goods Sold 2,725
	$2,725 Overapplied. The entry to adjust is: Cost of Goods Sold 2,725 Factory Overhead 2,725
	$2,725 Underapplied. The entry to adjust is: Factory Overhead 2,725 Cost of Goods Sold 2,725