One Company uses a normal cost system. The overhead variance for the current period is $40,000 underapplied, and the amount is not material. The accounting system provides the following account balances.

Materials inventory $20,000

Work-in-process inventory 30,000

Finished goods inventory 20,000

Cost of goods sold 50,000

The entry to adjust for the overhead variance would include

A credit to cost of goods sold for $20,000
		A debit to cost of goods sold for $20,000
		A credit to cost of goods sold for $40,000
		A debit to cost of goods sold for $40,000

One Company uses a normal cost system. The overhead variance for the current period is $40,000 overapplied, and the amount is not material. The accounting system provides the following account balances.

Materials inventory	$20,000
Work-in-process inventory	30,000
Finished goods inventory	20,000
Cost of goods sold	50,000

The entry to adjust for the overhead variance would include

		A credit to cost of goods sold for $40,000
		A debit to cost of goods sold for $40,000
		A debit to finished goods inventory for $8,000
		A credit to finished goods inventory for $8,000