MCO, Ltd. has provided the following data for the month of May. 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	$ 9,048	$ 5,800	$ 6,281	$ 21,129
Direct Labor	10,713	14,716	7,663	33,092
Manufacturing Overhead Applied	31,094	43,791	21,501	96,386
Total	50,855	64,307	35,445	150,607

The company 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 overhead applied during the month in those accounts.

Manufacturing overhead for the month was underapplied by $9,127.

What does the journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for the month include?

Select one:

A.

A credit of 2,036 to Finished Goods.

B.

A debit of 2,036 to Finished Goods.

C.

A debit of 4,147 to Finished Goods.

D.

A debit of 2,944 to Finished Goods.

E.

A credit of 4,147 to Finished Goods.