Wyman Corporation Uses a Process Costing System

question 100

Multiple Choice

Wyman Corporation uses a process costing system.The company manufactured certain goods at a cost of $800 and sold them on credit to Percy Corporation for $1,075.The complete journal entry to be made by Wyman at the time of this sale is:

• A)Debit Accounts Receivable $1,075;credit Sales $1,075;debit Cost of Goods Sold $800;credit Finished Goods Inventory $800.
• B)Debit Accounts Receivable $1,075;credit Sales $275;credit Finished Goods Inventory $800.
• C)Debit Cost of Goods Sold $1,075;credit Sales $1,075.
• D)Debit Finished Goods Inventory $800;debit Sales $1,075;credit Accounts Receivable $1,075;credit Cost of Goods Sold $800.
• E)Debit Accounts Receivable $1,075;debit Selling expense $800;credit Sales $1,075;credit Cost of Goods Sold $800.

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Definitions:

Prostaglandins

A collection of active lipid molecules that exhibit various hormone-like functions in animals.

Blood Pressure

The pressure exerted by circulating blood upon the walls of blood vessels, and is one of the principal vital signs.

Acidic Water

Water with a pH less than 7, indicating it has a higher concentration of hydrogen ions than pure water.

Phosphoglyceride

A type of glycerophospholipid which is a major component of cell membranes, composed of two fatty acids, a glycerol unit, and a phosphate group.