Baker Inc. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Manufacturing overhead for the month was underapplied by $2,000. The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts. The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for June would include the following:

Select one:

a. credit to Cost of Goods Sold of $1,440

b. credit to Cost of Goods Sold of $108,560

c. debit to Cost of Goods Sold of $1,440

d. debit to Cost of Goods Sold of $108,560

Work In Finished Cost of Process Goods Goods Sold Total $2,260$7,100 $26,500 $ 35,860 4,650 15,62058,30078,570 2.640 6,600 23,760 33,000 $9,550 $29,320 $108.560 $147430 Direct materials. Manufacturing overhead applied Total