Which One of the Following Journal Entries in a Standard

question 40

Multiple Choice

Which one of the following journal entries in a standard cost system is needed to record the completion of production for the period?

• A) A debit to Work-in-Process Inventory, at standard cost.
• B) A debit to Work-in-Process Inventory, at actual cost.
• C) A credit to Cost of Goods Sold, at standard cost.
• D) A debit to Finished Goods Inventory, at standard cost.
• E) A debit to Finished Goods Inventory, at actual cost.

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Definitions:

Collections

The process of receiving payment on accounts receivable or the amounts collected.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.

Collections

The process of receiving payments from customers or clients for goods or services rendered.

Merchandise Purchases

The total cost of goods bought for resale during a specific period in a retail or wholesale business.