Asked by Devin Usher on May 10, 2024
Verified
Ruddick Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:
A)
B)
C)
D)
Job-Order Costing
An accounting method used to track costs and evaluate the profitability of individual jobs or batches.
Work In Process
Inventory items that are in the middle of the manufacturing process and are not yet completed products.
Finished Goods
Products that have completed the manufacturing process but have not yet been sold or distributed to end-users.
- Document and analyze transaction-related journal entries within the context of job-order costing.
Verified Answer
LL
Luna LLC. annegarza6May 11, 2024
Final Answer :
B
Explanation :
The transfer of completed goods from Work in Process to Finished Goods is a debit to Finished Goods for the total cost of the completed goods and a credit to Work in Process for the same amount. Option B shows a debit to Finished Goods for $2,865,000 and a credit to Work in Process for $2,865,000, which reflects the total cost of the completed goods transferred to Finished Goods.
Learning Objectives
- Document and analyze transaction-related journal entries within the context of job-order costing.
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