A company finds that they have a credit balance in their manufacturing overhead amount of $26,000 at the end of the month. Assuming that the entire amount of the underapplied or overapplied overhead is closed out to cost of goods sold, what would be the effect of adjusting it? Cost of goods sold would increase by $26,000. Gross Margin would increase by decrease by $26,000. Gross Margin would decrease by decrease by $26,000, Net income would decrease by $26,000. Work in Process would decrease by $26,000