Alex Constructors Uses Job-Order Costing for Production of Custom Playground

Alex Constructors uses job-order costing for production of custom playground sets.The company incurred the following costs during March: $\begin{array}{ll}\text { Direct materials used } & \$ 22,000 \\\text { Direct labor } & \$ 14,000 \\\text { Applied overhead } & \$ 18,000 \\\text { Actual overhead } & \$ 20,000\end{array}$ If Alex Constructors closes out any under or overapplied overhead directly to cost of goods sold, which entry will the company make to eliminate the over or underapplied amount in March?

A) Cost of Goods Sold $\quad$$\quad$ 2,000
Work in Process Inventory $\quad$$\quad$ 2,000
B) Manufacturing Overhead $\quad$ 2,000
Work in Process Inventory $\quad$ 2,000
C) Manufacturing Overhead $\quad$ 2,000
Cost of Goods Sold $\quad$ 2,000
D) Cost of Goods Sold $\quad$ 2,000
Manufacturing Overhead $\quad$ 2,000