Actual manufacturing overhead for the current period is $19,600 while allocated manufacturing overhead for the current period is $18,700. What is the proper entry to dispose of the manufacturing overhead balance?

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Actual manufacturing overhead for the current period is $19,600 while allocated manufacturing overhead for the current period is $18,700. What is the proper entry to dispose of the manufacturing overhead balance?

A) debit cost of goods sold and credit manufacturing overhead for $900
B) debit cost of goods sold and credit finished goods inventory for $900
C) debit manufacturing overhead and credit cost of goods sold for $900
D) debit manufacturing overhead and credit work in process inventory for $900

Answer: A

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