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

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Definitions:

DSM

The Diagnostic and Statistical Manual of Mental Disorders, a standardized classification of mental health disorders used by healthcare professionals.

Medicalization

The process by which human conditions and problems come to be defined and treated as medical issues, often involving the use of medication or medical treatment.

Attention-Deficit/Hyperactivity Disorder

A neurodevelopmental disorder characterized by a pattern of inattention, hyperactivity, and impulsivity that is more frequent and severe than typically observed in individuals at a comparable level of development.

American Psychiatric Association

A professional organization of psychiatrists aimed at advancing the understanding and treatment of mental disorders.