Wyman Corporation Uses a Process Costing System

question 100

Multiple Choice

Wyman Corporation uses a process costing system.The company manufactured certain goods at a cost of $800 and sold them on credit to Percy Corporation for $1,075.The complete journal entry to be made by Wyman 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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Definitions:

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