At the end of its current year, a company learned that its overhead was underapplied by $1,500 and that this amount is not consid¬ ered material. Based on this information, the company should

a. Close the $1,500 to Finished Goods Inventory.

b. Close the $1,500 to Cost of Goods Sold.

c. Carry the $1,500 to the next period.

d. Do nothing about the $1,500 because it is not material and it is likely that overhead will be overapplied by the same amount next year.

e. Carry the $1,500 to the Income Statement as “Other Expense.”