Que Corporation Uses a Process Cost Accounting System

question 74

Multiple Choice

Que Corporation uses a process cost accounting system. The company manufactured certain goods at a cost of $800 and sold them on credit to Are Corporation for $1,075. The complete journal entry to be made by Que at the time of this sale is:

• A) Debit Accounts Receivable $1,075; credit Sales $1,075; debit Cost of Goods Sold $800; credit Finished Goods Inventory $800.
• B) Debit Accounts Receivable $1,075; credit Sales $275; credit Finished Goods Inventory $800.
• C) Debit Cost of Goods Sold $1,075; credit Sales $1,075.
• D) Debit Finished Goods Inventory $800; debit Sales $1,075; credit Accounts Receivable $1,075; credit Cost of Goods Sold $800.
• E) Debit Accounts Receivable $1,075; debit Selling expense $800; credit Sales $1,075; credit Cost of Goods Sold $800.

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