Caltran,Inc B) C) D)

question 124

Multiple Choice

Caltran,Inc.completed manufacturing Job 445.It included $350 of direct materials cost,$1240 of direct labor cost,and $500 of allocated manufacturing overhead.Which of the following is the correct journal entry needed to record the completed job?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Work-in-Process Inventory } & 2090 & \\
• \hline \text { Finished Goods Inventory } & & 2090 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Finished Goods Inventory } & 2090 & \\
• \hline \text { Materials Inventory } & & 2090 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Work-in-Process Inventory } & 1590 & \\
• \hline \text { Cost of Goods Sold } & & 1590 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Finished Goods Inventory } & 2090 & \\
• \hline \text { Work-in-Process Inventory } & & 2090 \\
• \hline
• \end{array}\]

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Definitions:

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with environmental, health, and social issues.

Government Subsidized

A financial contribution provided by the government to support industries, businesses, or individuals, often aimed at achieving economic or social objectives.

Negative Externalities

Costs suffered by a third party due to an economic transaction that they were not directly involved in, often leading to market failure.

Social Cost

The total cost to society as a whole, including both the private costs borne by individuals and the external costs to others not involved in the transaction.