Mowers Inc

Mowers Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.During December,the cost of goods manufactured was $126,000 and manufacturing overhead was underapplied by $5,000.The beginning finished goods inventory was $31,000 and the ending finished goods inventory was $35,000.
-The cost of goods sold that appears on the income statement for December and that has been adjusted for any underapplied or overapplied overhead is closest to:

A) $130,000
B) $126,000
C) $117,000
D) $127,000