Using a Process Costing System,the Journal Entry to Record the Cost

question 25

Multiple Choice

Using a process costing system,the journal entry to record the cost of completed goods when sold includes:

• A)a debit to Finished Goods Inventory.
• B)a credit to Cost of Goods Sold.
• C)a debit to Work in Process Inventory.
• D)a credit to Finished Goods Inventory.
• E)None of the answer choices is correct.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted for the investor's share of the investee's profit or loss.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset since it was acquired and put into use.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.

Initial Value Method

An accounting method where investments are recorded at their acquisition cost without adjusting for changes in the value or performance of the investment over time.