Work-in-Process				Finished Goods			Cost of Goods Sold			Total
Direct materials	$	6,410			$	12,900		$	112,720		$	132,030
Direct labor		3,830				11,900			103,040			118,770
Manufacturing overhead applied		3,368				7,578			73,254			84,200
Total	$	13,608			$	32,378		$	289,014		$	335,000

Manufacturing overhead for the month was underapplied by $11,400. The company allocates any underapplied or overapplied 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. The journal entry to record the allocation of any underapplied or overapplied overhead for May would include the following:

Multiple Choice

• credit to Finished Goods Inventory of $1,026.

• debit to Finished Goods Inventory of $33,400.

• credit to Finished Goods Inventory of $33,400.

• debit to Finished Goods Inventory of $1,026.