1. Test Company reported the following account balances before adjusting for the overhead variance. Raw materials inventory $10,000 Work-in-process inventory 20,000 Finished goods inventory 15,000 Cost of goods sold 85,000 The overhead variance was $8,000 overapplied. The amount is considered material. The journal entry to adjust for the overhead variance would include. C A debit to cost of goods sold for $5,231 A credit to cost of goods sold for $5,667 C CA debit to cost of goods sold for $5,667 CA credit to cost of goods sold for $5,231