Hamilton, Which Uses a Process-Costing System, Had a Balance in Its

question 65

Multiple Choice

Hamilton, which uses a process-costing system, had a balance in its Work-in-Process account of $68,000 on January 1. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that $86,000 of goods were still in production at year-end, Hamilton should make a journal entry on December 31 that includes:

• A) a debit to Cost of Goods Sold for $432,000.
• B) a credit to Finished-Goods Inventory for $432,000.
• C) a credit to Work-in-Process Inventory for $432,000.
• D) a debit to Finished-Goods Inventory for $86,000.
• E) a credit to Work-in-Process Inventory for $86,000.

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Definitions:

Just-World Phenomenon

The cognitive bias to believe that the world is fundamentally fair, leading to attributing consequences to actions on a moral basis.

Win-Win Solution

A resolution to a problem or conflict where all parties involved gain something beneficial.

Mirror-Image Perceptions

A concept in conflict resolution where opposing sides perceive each other in distorted, antagonistic ways, often as each being equally evil or wrong.

GRIT

A trait characterized by perseverance and passion for long-term goals, often considered a significant predictor of success and achievement.