The Ogunquit Company Uses a Predetermined Overhead Rate -Refer to the Figure

The Ogunquit Company uses a predetermined overhead rate. The following accounts have these unadjusted balances:
$\begin{array}{ll}\text { Raw Materials } & \$ 20,000 \\\text { Work in Process } & \$ 40,000 \\\text { Finished Goods } & \$ 10,000 \\\text { Cost of Goods Sold } & \$ 50,000\end{array}$
-Refer to the figure.If Overhead is underapplied by $12,000 and considered immaterial,what would be the journal entry?

A) Cost of Goods Sold $\quad\quad\$ 12,000$
Manufacturing Overhead $\quad\quad\quad\quad\quad\$ 12,000$
B) $$\begin{array} { l } \text { Manufacturing Overhead } &\$ 12,000 \\\text { Cost of Goods Sold } && \$ 12,000\end{array}$$
C) $\begin{array}{l}\begin{array}{ll}\text { Raw Materials } & \$ 2,000 \\\text { Work in Process } & \$ 4,000 \\\text { Finished Goods } & \$ 1,000 \\\text { Cost of Goods Sold } & \$ 5,000\end{array}\\\text { Manufacturing Overhead }& \$ 12,000\end{array}$
D) $$\begin{array} { l l l } \text { Manufacturing Overhead } & \$ 12,000 & \\\text { Raw Materials } & & \$ 2,000 \\\text { Work in Process } && \$ 4,000 \\\text { Finished Goods } & &\$ 1,000 \\\text { Cost of Goods Sold } && \$ 5,000\end{array}$$