Overhead is applied as a percent of direct labor costs. Estimated overhead and direct labor costs for the year were $250,000 and $125,000, respectively. During the year, actual overhead was $248,000 and actual direct labor cost was $123,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include:

a. A debit to Factory Overhead for $2,000.

b. A debit to Cost of Goods Sold for $2,000.

c. A credit to Finished Goods Inventory for $2,000.

d. A debit to Goods in Process Inventory for $2,000.