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Is overhead overapplied or underapplied. A debit to Cost of Goods Sold. Over Or Under Applied Manufacturing Overhead Explanation Journal Entries And Example Accounting For Management 135000 --Under-applied over-applied overhead. Journal entry for underapplied overhead . Closing out the balance in manufacturing overhead account to cost of goods sold is simpler than the allocation method. 18000 5000 For company A notice that the amount of overhead cost that has been applied to work in process 272000 is less than the actual overhead cost for the year 290000. Manufacturing overhead cost applied to work in process during the year. The journal entry for the applied manufacturing overhead cost computed in the above example would be made as follows. Debit to Cost of Goods Sold of 262920 B. Since manufacturing overhead has a debit balance it is underapplied as it has not been completely allocated. The manufacturing overhead cost applied to the job is debited to work in pro...

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