Bangor Company Applies Manufacturing Overhead What Is the Journal Entry If the Amount Is Considered

Multiple Choice

Bangor Company applies manufacturing overhead.At the end of the year the following data were available: $\begin{array}{|l|l|}\hline \text { Actual manufacturing overhead } & \$ 115,000 \\\hline \text { Estimated manufacturing overhead } & \$ 120,000 \\\hline \text { Applied manufacturing overhead } & \$ 118,000 \\\hline\end{array}$ What is the journal entry if the amount is considered small?

A) $\begin{array}{c}\text { Manufacturing Overhead } &\$ 3,000 \\\text { Cost of Goods Sold }&&\$ 3,000\end{array}$
B) $\begin{array}{c}\text { Manufacturing Overhead } &\$ 5,000 \\\text { Cost of Goods Sold }&&\$ 5,000\end{array}$
C) $\begin{array}{ccc}\text { Cost of Goods Sold } & \$ 2,000 & \\\text { Manufacturing Overhead } && \$ 2,000\end{array}$
D) $\begin{array}{ccc}\text { Cost of Goods Sold } & \$ 3,000 & \\\text { Manufacturing Overhead } && \$ 3,000\end{array}$