During the current accounting period, Bennet applied $14,500 of estimated overhead cost to production. Actual overhead costs were $14,325. Assuming that the balance in the Manufacturing Overhead is insignificant, the recognition of the transaction to close that account will:

Multiple Choice

• a. Decrease cost of goods sold and increase stockholders equity.

• b. Increase cost of goods sold.

• c. Decrease stockholders' equity.

• d. Decrease total assets and total liabilities.