At the end of the period

At the end of the period - inventory, and cost of goods...

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At the end of the period, the factory overhead account has a credit balance of ($125). This is called  overapplied overhead and an entry would be made at the end of the period to move it to cost of  goods sold, or alternatively, to allocate the difference to work-in-process inventories, finished goods 
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Unformatted text preview: inventory, and cost of goods sold. After recording this entry, the balance in the factory overhead account is zero. General Journal Date Account Title and Description Ref. Debit Credit 20X2 June 30 Factory Overhead 125 (M) Cost of Goods Sold 125 Close out overapplied overhead...
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