Diaz Company Uses Process Costing in Its Two Processing Departments $\begin{array}{llr} \text {Cost of Goods Sold } &62,000\\ \text { Finished Goods Inventory } &&62,000\\\end{array}$

question 21

Short Answer

Diaz Company uses process costing in its two processing departments Assembly and Finishing.If completed goods with a cost of $62,000 are sold,which one of the following journal entries would be made to record this transaction?
a.
$\begin{array}{llr} \text {Cost of Goods Sold } &62,000\\ \text { Finished Goods Inventory } &&62,000\\\end{array}$

b.
$\begin{array}{llr} \text {Cost of Goods Sold } &62,000\\ \text { Sales Revenue } &&62,000\\\end{array}$

c.
$\begin{array}{llr} \text {WIP Inventory - Assembly } &62,000\\ \text { WIP Inventory - Finishing } &&62,000\\\end{array}$

d.
$\begin{array}{llr} \text {Finished Goods Inventory } &62,000\\ \text { Cost of Goods Sold } &&62,000\\\end{array}$

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

Understand the economic basis and reasons for world trade.

Evaluate the impact of trade policies on employment and industry sectors within an economy.

Grasp the significance of trade agreements and their impact on international trade relations.

Analyze the concept of export subsidies and their effects on international trade and domestic economies.

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Definitions:

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