Diaz Company Uses Process Costing in Its Two Processing Departments $\begin{array}{llr} \text { Cost of Goods Sold } &15,000\\ \text { WIP Inventory - Finishing } &&15,000\\\end{array}$

question 51

Short Answer

Diaz Company uses process costing in its two processing departments Assembly and Finishing.If the Finishing Department is the final production department and completes product with a production cost of $15,000,which one of the following journal entries would be made to record this transaction?
a.
$\begin{array}{llr} \text { Cost of Goods Sold } &15,000\\ \text { WIP Inventory - Finishing } &&15,000\\\end{array}$

b.
$\begin{array}{llr} \text { Finished Goods Inventory } &15,000\\ \text { Cost of Goods Sold } &&15,000\\\end{array}$

c.
$\begin{array}{llr} \text {WIP Inventory - Finishing } &15,000\\ \text {Finished Goods Inventory } &&15,000\\\end{array}$

d.
$\begin{array}{llr} \text {Finished Goods Inventory } &15,000\\ \text {WIP Inventory - Finishing } &&15,000\\\end{array}$

e. $\text {None of the answer choices is correct.}$