Matthew Company Uses a Job Cost System

Multiple Choice

Matthew Company uses a job cost system.The overhead account shows a $5,000 overallocated balance at the end of the year.Actual overhead incurred was $100,000.Other balances are:

The entry to close manufacturing overhead would include a

A) debit to Manufacturing Overhead account for $5,000.
B) debit to Work-in-Process Inventory account for $5,000.
C) debit to Cost of Goods Sold account for $5,000.
D) credit to Work-in-Process Inventory account for $5,000.