The following information relates to Spock Manufacturing Company:
|
Total estimated manufacturing overhead at beginning of year |
$620,000 |
|
Total manufacturing overhead applied to production during |
|
|
the year |
$625,000 |
|
Total manufacturing overhead incurred during the year |
$618,000 |
The company closes out the balance in the Manufacturing Overhead to Cost of Goods Sold at the end of the year. In the journal entry to close out the balance, the company would:
A) debit cost of goods sold for $2,000
B) credit cost of goods sold for $2,000
C) credit cost of goods sold for $7,000
D) debit cost of goods sold for $7,000