6:07 Notes May 9, 2020 at 6:07 PM The XYZ company under - allocated (underapplied) manufacturing overhead costs during 2011. Which of the following statements describes the effect on the financial statements of the sub- adjustment adjustment entry? The amount of the adjustment is not substantial (material). Select one: to . decreases the balance of the inventory of goods in process (work in process) b. Increase in the cost of goods sold c. Increase in period costs d. the balance of finished goods decreases