Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $115,500 and $125,300, respectively. During the year, actual overhead was $107,700 and actual direct labor cost was $118,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include (Round predetermined overhead rate to nearest whole percentage.): A credit to Factory Overhead for $860. A credit to Cost of Goods Sold for $860. A credit to Finished Goods Inventory for $860. A debit to Cost of Goods Sold for $860. A debit to Work in Process Inventory for $860.