Clemmens Company applies overhead based on direct labor cost. Estimated overhead and direct labor costs for the year were $114,500 and $124,700, respectively. During the year, actual overhead was $107,100 and actual direct labor cost was $117,000. 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 Finished Goods Inventory for $540.

A debit to Cost of Goods Sold for $540.

A credit to Factory Overhead for $540.

A credit to Cost of Goods Sold for $540.

A debit to Work in Process Inventory for $540.