June Company Ltd B) $\begin{array} { | l | r | r | } \hline \text { Cash } & 3,800 & \\\hline \text { Furniture } & & 3,800 \\\hline\end{array}$

question 105

Multiple Choice

June Company Ltd. recently sold some used furniture for $3,800 cash. The furniture cost $19,600 and had accumulated amortization through the date of sale totalling $17,300. The journal entry to record the sale of the furniture is:

• A) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 3,800 & \\
• \hline \text { Accum. Amort.-Furniture } & 17,300 & \\
• \hline \text { Furniture } & & 19,600 \\
• \hline \begin{array} { c }
• \text { Gain on Sale of } \\
• \text { Furniture }
• \end{array} & & 1,500 \\
• \hline
• \end{array}\)
• B) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 3,800 & \\
• \hline \text { Furniture } & & 3,800 \\
• \hline
• \end{array}\)
• C) \(\begin{array} { | c | r | r | }
• \hline \text { Cash } & 3,800 & \\
• \hline \text { Gain on Sale of } & & \\
• \text { Furniture } & & 3,800 \\
• \hline
• \end{array}\)
• D) \(\begin{array} { | l | r | r | }
• \hline \text { Cash } & 3,800 & \\
• \hline \text { Accum. Amort.-Furniture } & 15,800 & \\
• \hline \text { Furniture } & & 19,600 \\
• \hline
• \end{array}\)

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Definitions:

Cutting Department

A section within a manufacturing facility where materials are cut to size or shape before proceeding to further stages of production.

Equivalent Unit

An equivalent unit is a measure used in cost accounting to quantify the amount of materials or labor in terms of finished goods units.

Process Costing

A cost accounting method used when homogenous products are produced on a continuous basis, allocating costs to each processing department or stage.

Conversion Costs

The sum of labor and overhead costs necessary to convert raw materials into finished products.