The Cherokee Company uses a predetermined overhead rate. The following accounts have these unadjusted balances:

Raw Materials	$20,000
Work in Process	$40,000
Finished Goods	$10,000
Cost of Goods Sold	$50,000

If Manufacturing overhead was $12,000 underapplied and considered material, what is the journal entry?

a.

Manufacturing Overhead$12,000

Work in Process$4,800

Finished Goods$1,200

Cost of Goods Sold$6,000

b.

Work in Process$4,800

Finished Goods$1,200

Cost of Goods Sold$6,000

Manufacturing Overhead$12,000

c.

Manufacturing Overhead$12,000

Raw Materials$2,000

Work in Process$4,000

Finished Goods$1,000

Cost of Goods Sold$5,000

d.

Cost of Goods Sold$12,000

Manufacturing Overhead$12,000

e.

Raw Materials$2,000

Work in Process$4,000

Finished Goods$1,000

Cost of Goods Sold$5,000

Manufacturing Overhead$12,000