Fils Incorporated has provided the following data for the month of March. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

	Work In Process	Finished Goods	Cost of Goods Sold	Total
Direct materials	$4,080	$12,780	$ 59,940	$ 76,800
Direct labor	2,110	11,360	53,280	66,750
Manufacturing overhead applied	2,820	7,990	36,190	47,000
Total	$9,010	$32,130	$149,410	$190,550

Manufacturing overhead for the month was underapplied by $4,000.

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 March would include the following:

Multiple Choice

• debit to Cost of Goods Sold of $3,080

• debit to Cost of Goods Sold of $149,410

• credit to Cost of Goods Sold of $3,080

• credit to Cost of Goods Sold of $149,410