Cooper Incorporation, Which Uses a Process-Costing System, Had a Balance

question 48

Multiple Choice

Cooper Incorporation, which uses a process-costing system, had a balance in its Work-in-Process account of $81,000 on January 1. The account was charged with direct materials, direct labour, and manufacturing overhead of $515,000 throughout the year. If a review of the accounting records determined that $80,000 of goods were still in production at year-end, Cooper should make a journal entry on December 31 that includes:

• A)a debit to Cost of Goods Sold for $516,000.
• B)a credit to Finished-Goods Inventory for $516,000.
• C)a credit to Work-in-Process Inventory for $516,000.
• D)a debit to Finished-Goods Inventory for $80,000.
• E)a credit to Work-in-Process Inventory for $80,000.

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Definitions:

Dependent Variable

In an experiment, it is the variable being tested and measured, which is expected to change due to manipulation of the independent variable.

Independent Variable

A variable in an experiment that is manipulated by the researcher to observe its effect on the dependent variable.

Control Variable

An element that is kept constant or regulated to minimize its impact on the outcome of an experiment.

Naturalistic Observation

An investigative technique where individuals are watched in their natural surroundings without any interference from the person conducting the study.