5.Assume that a company provided the following T-account before it had recorded any closing entries.

Manufacturing Overhead
	12,000	240,000
	110,000
	40,000
	70,000
		8,000

Based on the transactions recorded in this account, which of the following must be true?

Multiple Choice

• The entry to close this account will increase cost of goods sold.

• The overapplied overhead is $8,000.

• The entry to close this account will increase finished goods.

• The underapplied overhead is $8,000.