Helen Company Uses a Job-Order-Cost System and Had the Following

question 55

Multiple Choice

Helen Company uses a job-order-cost system and had the following data available: $$\begin{array} { l r } \text { Beginning direct-materials inventory } & \$ 26,000 \\\text { Beginning WIP inventory } & 64,000 \\\text { Beginning finished-goods inventory } & 58,000 \\\text { Direct materials purchased on account } & 148,000 \\\text { Direct materials requisitioned } & 82,000 \\\text { Direct-labor cost incurred } & 130,000 \\\text { Factory overhead incurred } & 146,000 \\\text { Cost of goods completed } & 292,000 \\\text { Cost of goods sold } & 256,000 \\\text { Overhead applicati on rate } & 125 \% \\\quad \text { as a percent of direct-labor cost) } &\end{array}$$ The journal entry to record the cost of goods completed would include a _____.

• A)debit to WIP Inventory for $256,000
• B)credit to Finished-Goods Inventory for $292,000
• C)credit to Cost of Goods Sold for $256,000
• D)credit to WIP Inventory for $292,000

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Definitions:

Common Stockholders

Owners of common shares in a corporation, having voting rights and potentially receiving dividends.

Cumulative Preferred

Refers to preferred stock where dividends that were not paid in the past must be paid out to preferred shareholders before dividends can be distributed to common shareholders.

Proposed Acquisition

A potential financial transaction where one company offers to purchase or merge with another entity.

Dividend Growth Model

A method for valuing a stock by assuming dividends grow at a constant rate indefinitely and calculating the present value of the forecasted dividends.