Daniel Company Uses a Job Cost System $\quad$ $\quad$

Multiple Choice

Daniel Company uses a job cost system. The overhead account shows a $4,500 overallocated balance at the end of the year. Actual overhead incurred was $95,000. Other balances are:

Ending raw materials $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $10,000
Work in process inventory at end of year $\quad$$\quad$ 30,000
Finished goods inventory at end of year $\quad$$\quad$ 45,000
Cost of goods sold for year $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ $275,000

The entry to close manufacturing overhead would include a

A) debit to Manufacturing Overhead for $4,500.
B) credit to Cost of Goods Sold for $4,500.
C) debit to Cost of Goods Sold for $4,500.
D) credit to Manufacturing Overhead for $4,500.