Figure 4-7 the Cherokee Company Uses a Predetermined Overhead Rate

Multiple Choice

Figure 4-7 The Cherokee Company uses a predetermined overhead rate. The following accounts have these unadjusted balances:
Refer to Figure 4-7. If overhead is underapplied by $12,000 and considered immaterial, the journal entry would be

A) Cost of Goods Sold $12,000 Manufacturing overhead $12,000
B) Manufacturing Overhead $12,000 Cost of Goods Sold $12,000
C) Raw Materials $2,000 Work in Process $4,000
Finished goods $1,000
Cost of Goods Sold $5,000
Manufacturing Overhead $12,000
D) Manufacturing Overhead $12,000 Raw Materials $2,000
Work in Process $4,000
Finished goods $1,000
Cost of Goods Sold $5,000
E) Manufacturing Overhead $12,000 Work in Process $4,800
Finished goods $1,200
Cost of Goods Sold $6,000