Microsmart,Inc

Multiple Choice

Microsmart,Inc.'s ending balances for Work-in-Process and Finished Goods Inventory were $365,800 and $743,200,respectively.The unadjusted Cost of Goods Sold was $1,543,700,and underapplied manufacturing overhead amounted to $148,000,which was deemed significant.When Microsmart closed out the underapplied manufacturing overhead,the Cost of Goods Sold account would have been: (rounded to the nearest whole dollar)

A) credited for $148,000
B) debited for $106,324
C) debited for $86,126
D) credited for $14,189