The Journal Entry Needed to Record the Completion of a Job

question 32

Multiple Choice

The journal entry needed to record the completion of a job includes a

• A)debit to cost of goods sold.
• B)debit to work in process inventory.
• C)debit to finished goods inventory.
• D)debit to raw materials inventory.

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Definitions:

Adjusting

The process of making modifications to certain accounts through adjusting entries to reflect the true financial status of a business at the end of an accounting period.

Work in Process Inventory

This refers to the materials, labor, and overhead costs for products that are in the production process but not yet completed.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost is more than the actual overhead incurred.

Actual Overhead

The real costs incurred for overhead in a business, which can include utilities, rent, management salaries, and other indirect expenses.