Caltran,Inc B) C) D)

question 98

Multiple Choice

Caltran,Inc.completed manufacturing Job 445.It included $350 of direct materials cost,$1240 of direct labor cost,and $500 of allocated manufacturing overhead.Which of the following is the correct journal entry needed to record the completed job?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Work-in-Process Inventory } & 2090 & \\
• \hline \text { Finished Goods Inventory } & & 2090 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Finished Goods Inventory } & 2090 & \\
• \hline \text { Materials Inventory } & & 2090 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Work-in-Process Inventory } & 1590 & \\
• \hline \text { Cost of Goods Sold } & & 1590 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Finished Goods Inventory } & 2090 & \\
• \hline \text { Work-in-Process Inventory } & & 2090 \\
• \hline
• \end{array}\]

---

Definitions:

Adjusted Trial Balance

A trial balance taken after adjusting entries have been posted, showing the balances of all accounts including the adjustments for accruals and deferrals.

Adjusting Entries

Journal entries made at the end of an accounting period to update revenue and expense accounts and ensure that the financial statements reflect the accurate financial situation.

Financial Statements

Documents that provide an overview of the financial health of a corporation, including details on assets, liabilities, income, and cash flow, rephrased for a second entry.

Adjusted Trial Balance

A listing of all company accounts that will appear on the financial statements after adjustments are made for journal entries, ensuring the total debits equal total credits.