At the end of the last fiscal year, Baehr Company had the following account balances: Overapplied overhead $ 1,000 Cost of goods sold 980,000 Work-in-process inventory 38,000 Finished goods inventory 82,000 The most common treatment of the overapplied overhead would be to

• A.Credit it to cost of goods sold.

• B.Prorate it among work-in-process inventory, finished goods inventory and cost of goods sold.

• C.Report it as miscellaneous operating revenue on the income statement.

• D.Carry it as a deferred credit on the balance sheet.