XYZ Uses Job Costing

Multiple Choice

XYZ uses job costing. Actual manufacturing overhead for the period is $20,200 while allocated manufacturing overhead is $18,500. What entry will close the manufacturing overhead balance?

A) Debit the Manufacturing Overhead account and credit the Work-in-Process account for $1700.
B) Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $1700.
C) Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $1700.
D) Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $1700.