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

question 55

Multiple Choice

Using a process costing system,the journal entry to record the use of direct labor in the Finishing Department includes:

• A)a credit to Wages Payable.
• B)a debit to Wages Expense.
• C)a credit to Work in Process Inventory - Finishing.
• D)a credit to Finished Goods Inventory.
• E)None of the answer choices is correct.

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Definitions:

Total Liabilities

The sum of all financial obligations a company owes to external parties, including both short-term and long-term liabilities.

Total Liabilities

The aggregate of all debts and obligations owed by a company, reported on the balance sheet.

Shareholders' Equity

Represents the residual interest in the assets of a corporation after deducting liabilities, essentially the net worth belonging to shareholders.

Total Assets

The aggregate of all financial resources owned by a company, including current and non-current assets, which reflects its total economic value.