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If overapplied or underapplied overhead is material, it should be disposed of by allocating it to: Cost of goods sold and finished goods inventory. Finished goods inventory and work in process inventory. work in process inventory finished goods inventory, and of goods sold cost work in process inventory. Raw materials inventory, work in process inventory, and finished goods inventory. A company that uses a job order costing system would make the following entry to record the flow of direct materials into production debit Work in Process Inventory, credit Cost of Goods Sold. debit Work in Process Inventory, credit Raw Materials Inventory debit Work in Process Inventory, credit Factory Overhead. debit Factory Overhead, credit Raw Materials Inventory debit Finished Goods Inventory, credit Raw Materials Inventory. A type of production that yields customized products or services for each customer is called Customer orientation production. Job order production. Just-in-time production Job lot production. Process production