Luca Company overapplied manufacturing overhead during 2006

Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material?

A.   A decrease to work in process inventory
B.   A decrease to applied overhead
C.   An increase to finished goods
D.   An increase to cost of goods sold
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