If manufacturing overhead has been underapplied during the year the adjusting entry at the end of the year will show a

A) debit to Manufacturing Overhead.
B) credit to Cost of Goods Sold.
C) debit to Work in Process Inventory.
D) debit to Cost of Goods Sold.

Underapplied Overhead

The situation where the allocated manufacturing overhead is less than the actual overhead incurred, leading to an adjustment need in accounting records.

Adjusting Entry

An accounting journal entry made to amend the preliminary financial records before preparing financial statements.

Manufacturing Overhead

Indirect costs related to manufacturing, including utilities, rent for manufacturing facilities, and equipment maintenance, not directly tied to individual units produced.