The Sterling Company Applies Manufacturing Overhead

Multiple Choice

The Sterling Company applies manufacturing overhead. At the end of the year the following data were available: The following accounts had the unadjusted balances:
What is the journal entry if the amount is considered material?

A) Work in Process $ 1,000 Finished Goods $ 1,000
Cost of goods sold $ 3,000
Manufacturing overhead $5,000
B) Work in Process $ 3,000 Finished Goods $ 3,000
Cost of goods sold $ 9,000
Manufacturing overhead $15,000
C) Manufacturing Overhead $5,000 Work in Process $ 1,000
Finished Goods $ 1,000
Cost of goods sold $ 3,000
D) Manufacturing Overhead $15,000 Work in Process $ 3,000
Finished Goods $ 3,000
Cost of goods sold $ 9,000
E) none of these