Michael Paints Has Two Processes-Coloring Department and Mixing Department

question 10

Multiple Choice

Michael Paints has two processes-Coloring Department and Mixing Department. Michael assigned $385,000 to the 5,500 gallons of paint transferred from Mixing Department to Finished Goods Inventory. The journal entry to record completion of processing is:

• A)debit Work-in-Process Inventory-Mixing, $385,000; credit Finished Goods Inventory, $385,000.
• B)debit Finished Goods Inventory, $385,000; credit Cost of Goods Sold, $385,000.
• C)debit Cost of Goods Sold, $385,000; credit Finished Goods Inventory, $385,000.
• D)debit Finished Goods Inventory, $385,000; credit Work-in-Process Inventory-Mixing, $385,000.

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Definitions:

Negotiable Instrument

A document in writing that promises to pay a designated sum of money, either when asked or at a predetermined time, with the document specifying who must make the payment.

Signs

Objects, gestures, or marks used to convey information, instructions, or identifications.

Primary Liable

Being the first or main party responsible for fulfilling an obligation or compensating for damages.

Co-signs

The act of signing a loan or agreement jointly with another person, thereby assuming equal responsibility for the repayment.