Manufacturing overhead is overallocated $1,000 at the end of the current period. The journal entry to dispose of the overallocated overhead balance involves a debit to:
A) manufacturing overhead and a credit to cost of goods sold for $1,000
B) cost of goods sold and a credit to manufacturing overhead for $1,000
C) manufacturing overhead and a credit to work in process inventory for $1,000
D) cost of goods sold and a credit to finished goods inventory for $1,000
Answer: A
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