XYZ Uses Job Costing

Multiple Choice

XYZ uses job costing. Actual manufacturing overhead for the period is $20,000 while allocated manufacturing overhead is $18,000. What entry will close the manufacturing overhead balance?

A) Debit manufacturing overhead and credit work in process for $2,000
B) Debit manufacturing overhead and credit cost of goods sold for $2,000
C) Debit cost of goods sold and credit finished goods inventory for $2,000
D) Debit cost of goods sold and credit manufacturing overhead for $2,000