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.

---

Definitions:

Collective Identity

A sense of belonging and shared characteristics with a group, distinguishing members from other groups.

Individual Interests

The personal goals, desires, or needs that a person aims to achieve or satisfy.

Simulated

An artificial representation or imitation of a real-world process, environment, or system, often used for training, analysis, or research purposes.

Complexity

Being characterized by complex or convoluted details.