Garcia Manufacturing Has Two Processes-Coloring and Mixing

question 53

Multiple Choice

Garcia Manufacturing has two processes-Coloring and Mixing.The company assigned $390,000 to the 6000 gallons of paint transferred from Mixing Department to Finished Goods Inventory.The journal entry to record this assignment of cost is ________.

• A) debit Work-in-Process Inventory-Mixing, $390,000; credit Finished Goods Inventory, $390,000
• B) debit Finished Goods Inventory, $390,000; credit Cost of Goods Sold, $390,000
• C) debit Cost of Goods Sold, $390,000; credit Finished Goods Inventory, $390,000
• D) debit Finished Goods Inventory, $390,000; credit Work-in-Process Inventory-Mixing, $390,000