Gerald Eiche Company Uses a Job-Order Costing System and Has

question 63

Multiple Choice

Gerald Eiche Company uses a job-order costing system and has the following data available:
$\begin{array}{ll}\text { Beginning Direct Materials Inventory } & \$ 26,000 \\\text { Beginning Work-In-Process Inventory } & \$ 64,000 \\\text { Beginning Finished Goods Inventory } & \$ 58,000\\ \text {Direct materials purchased on account }&\$148,000 \\ \text { Direct materials requisitioned}&\$82,000 \\ \text {Direct labor cost incurred }&\$130,000 \\ \text {Factory overhead incurred }&\$ 146,000\\ \text {Cost of goods completed }&\$292,000 \\ \text {Cost of Goods Sold }&\$ 260,000\\ \text { Overhead application rate (based on direct labor cost) }&125\%\\\end{array}$
The journal entry to record the cost of goods sold would include a ________.

• A) Debit to Finished Goods Inventory for $292,000
• B) Credit to Finished Goods Inventory for $260,000
• C) Credit to Work-In-Process Inventory for $260,000
• D) Credit to Cost of Goods Sold for $292,000

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Definitions:

Fixation

In psychology, a persistent focus of the id’s pleasure-seeking energies at an earlier stage of psychosexual development.

Sign Language

A form of communication that uses visual gestures and signs, as used by deaf and hard-of-hearing people.

Syntax

Syntax refers to the set of rules, principles, and processes that govern the structure of sentences in a language, including the arrangement of words and phrases to create meaningful sentences.

Imitation

The action of using someone or something as a model and replicating their behavior or actions.