Account Balances from the Boilermakers Company Are as Follows If Underapplied or Overapplied Overhead Is Material and Is Allocated

Multiple Choice

Account balances from the Boilermakers Company are as follows: $\begin{array}{lr}\text { Manufacturing Overhead } & \$ 240,000 \text { underapplied } \\\text { Work in Frocess } & 100,000 \\\text { Finished Goods } & 300,000 \\\text { Cost of Goods Sold } & 800,000\end{array}$
If underapplied or overapplied overhead is material and is allocated to Work in Process, Finished Goods, and Cost of Goods Sold (based on ending account balances) , Cost of Goods Sold after adjustment would have a balance of

A) $ 960,000.
B) $ 640,000.
C) $1,040,000.
D) $1,440,000.