Carson Inc. has provided the following data for the month of May. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

	Work-in-Process				Finished Goods			Cost of Goods Sold			Total
Direct materials	$	6,910			$	13,400		$	113,220		$	133,530
Direct labor		4,330				12,400			103,540			120,270
Manufacturing overhead applied		3,428				7,713			74,559			85,700
Total	$	14,668			$	33,513		$	291,319		$	339,500

Manufacturing overhead for the month was underapplied by $11,900. 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:

debit to Finished Goods Inventory of $34,900.

credit to Finished Goods Inventory of $34,900.

debit to Finished Goods Inventory of $1,071.

credit to Finished Goods Inventory of $1,071.