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