If a manufacturing firm ends the year with underapplied overhead, one method of treatment is

A) debit manufacturing overhead, credit cost of goods sold.
B) debit cost of goods sold, credit manufacturing overhead.
C) debit work in process, credit manufacturing overhead.
D) debit finished goods inventory, credit manufacturing overhead.

Underapplied Overhead

A situation in accounting where the allocated overhead for a period is less than the actual overhead incurred.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including salaries of non-direct labor, maintenance, and factory supplies.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.