Harrington Industries, Which Uses a Process-Costing System, Had a Balance

question 88

Multiple Choice

Harrington Industries, which uses a process-costing system, had a balance in its Work-in-Process account of $68,000 on January 1. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that $86,000 of goods were still in production at year-end, Harrington should make a journal entry on December 31 that includes:

• A) a debit to Cost of Goods Sold for $432,000.
• B) a credit to Finished-Goods Inventory for $432,000.
• C) a credit to Work-in-Process Inventory for $432,000.
• D) a debit to Finished-Goods Inventory for $86,000.
• E) a credit to Work-in-Process Inventory for $86,000.

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Definitions:

Ask Price

The lowest price a seller is willing to accept for a security.

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