Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $114,500 and $125,200, respectively. During the year, actual overhead was $107,600 and actual direct labor cost was $119,100. 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.):

Multiple Choice

• A credit to Cost of Goods Sold for $781.

• A credit to Finished Goods Inventory for $781.

• A debit to Work in Process Inventory for $781.

• A credit to Factory Overhead for $781.

• A debit to Cost of Goods Sold for $781.