Answer:
work in process inventory
Explanation:
The journal entry to record overhead applied is shown below:
Work in progress inventory A/c Dr XXXXX
To Factory overhead A/c XXXXX
(Being applied overhead is recorded)
And, the journal entry to record over applied is presented below:
Manufacturing overhead A/c Dr XXXXX
To Cost of Goods sold A/c XXXXX
(Being over-applied overhead is recorded)
Over applied is come when actual overhead based on predetermined rate is more than the actual manufacturing overhead
