Jimbo Company Uses a Job- Order- Cost System and Had

Jimbo Company uses a job- order- cost system and had the following data available: $\begin{array}{ll}\text { Beginning direct- materials inventory } & \$ 26,000 \\\text { Beginning WIP inventory } & 64,000 \\\text { Beginning finished- goods inventory } & 58,000 \\\text { Direct mat erial s purchased on account } & 148,000 \\\text { Direct mat erial s requisitioned } & 82,000\\\text { Direct-labor cost incurred } & 130,000 \\\text { Fact ory overhe ad incurred } & 146,000 \\\text { Cost of goods completed } & 292,000 \\\text { Cost of goods sold } & 256,000 \\\text { Overhead application rate } & 125 \%\end{array}$ (as a percent of direct- labor cost) The journal entry to record the factory overhead costs incurred would include a:

A) credit to Factory Department Overhead Control for $162,500
B) credit to WIP Inventory for $162,500
C) debit to WIP Inventory for $146,000
D) debit to Factory Department Overhead Control for $146,000