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 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 goods sold account. For the month of January, Huang had the following overhead transactions. Make appropriate 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.

10 Paid electricity bill, $250.

15 Paid repair expense, $1,500.

Jan. 21 Vacation pay for machine operator, $500 (Wages Payable).

31 Depreciation expense for the month, $450.

31 Factory overhead applied was $3,500.