The Journal Entry to Record the Completion of a Job

question 79

Multiple Choice

The journal entry to record the completion of a job in a job costing system is:
$$\begin{array} { | l | l | l | l | } \hline \text { A } & \text { Finished Goods Inventory } & \mathrm { xxx } & \\\hline & \text { Materials Inventory } & & x \mathrm { xxx } \\\hline\end{array}$$
$$\begin{array} { | l | l | c | c | } \hline \text { B. } & \text { Work-In-Process Inventory } & x x & \\\hline & \text { Applied Manufacturing Overhead } & & x x x \\\hline\end{array}$$
$$\begin{array} { | l | l | l | l | } \hline \text { C. } & \text { Manufacturing Overhead Control } & \text { x x x} & \\\hline & \text { Finished Goods Inventory } & & \text { x x x }\\\hline\end{array}$$
$$\begin{array} { | l | l | l | l | } \hline \text { D. } & \text { Finished Goods Inventory } & \text { x x x }& \\\hline & \text { Work-In-Process Inventory } & & \text { x x x} \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Time Value

The additional amount an investor is willing to pay for an option or other financial product based on its potential to increase in value over time.

November 45 Call

A type of option contract that gives the holder the right, but not the obligation, to buy a stock or another financial instrument at a specified price (in this case, $45) on or before November's expiration date.

Risk-Free Rate Of Return

The assumed rate of return on an investment that carries no risk, typically illustrated by the return on government securities.

Strike Price

The fixed price at which the holder of an option can buy (in the case of a call) or sell (in the case of a put) the underlying asset.