At the end of its current year, a company learned that its overhead was underapplied by $1,500 and that this amount is not considered material. Based on this information, the company should

a. Credit the $1,500 to Finished Goods Inventory.

b. Credit the $1,500 to Cost of Goods Sold.

c. Debit the $1,500 to Cost of Goods Sold.

d. Do nothing about the $1,500 because it is not material and it is likely that overhead will be overapplied by the same amount next year.

e. Include the $1,500 on the income statement as “Other Expense.”