Thaisom Company applies manufacturing overhead. At the end of the year the following data were available:

Actual Manufacturing Overhead $115,000
Estimated Manufacturing Overhead $120,000
Applied Manufacturing Overhead $118,000

What is the journal entry if the amount of under- or over-applied overhead is considered small?

a. Manufacturing Overhead $3,000
Cost of Goods Sold $3,000

b. Cost of Goods Sold $2,000
Manufacturing Overhead $2,000

c. Cost of Goods Sold $5,000
Manufacturing Overhead $5,000

d. Manufacturing Overhead $5,000
Cost of Goods Sold $5,000

e. Cost of Goods Sold $3,000
Manufacturing Overhead $3,000

Answer rating: 100% (QA)

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