At end of the year, a company has a $1,200 debit balance in Manufacturing Overhead. The company

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At end of the year, a company has a $1,200 debit balance in Manufacturing Overhead. The company:

(a)makes an adjusting entry by debiting Manufacturing Overhead Applied for $1,200 and crediting Manufacturing Overhead for $1,200.

(b)makes an adjusting entry by debiting Manufacturing Overhead Expense for $1,200 and crediting Manufacturing Overhead for $1,200.

(c)makes an adjusting entry by debiting Cost of Goods Sold for $1,200 and crediting Manufacturing Overhead for $1,200.

(d)makes no adjusting entry because differences between actual overhead and the amount applied are a normal part of job order costing and will average out over the next year.

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