A company allocates manufacturing overhead (MOH) by using both a MOH control account and a MOH allocated account.At the end of the year, the company determines that it has under-allocated.If the company uses the direct write-off method what will be the correction entry to dispose of the under-allocation.

a)

debit MOH control; credit MOH allocated & COGS

b)

debit MOH control & COGS; credit MOH allocated

c)

debit MOH allocated; credit MOH control & COGS

d)

More information is required

e)

debit MOH allocated & COGS; credit MOH control