Altima, Inc. finished Job A40 on the last working day of the year. It utilized $380 of direct materials and $2,860 of direct labor. Altima uses a predetermined overhead allocation rate based on direct labor costs, which has been fixed at 40%. The entry to record the completion of the job should involve a O A. debit to Work - in - Process Inventory $4,384 and a credit to Finished Goods Inventory $4,384 O B. debit to Finished Goods Inventory $4,384 and a credit to Work - in - Process Inventory $4,384 OC. debit to Cost of Goods Sold $4,384 and a credit to Finished Goods Inventory $4,384 O D. debit to Finished Goods Inventory $4,384 and a credit to Materials Inventory $4,384
Altima, Inc. finished Job A40 on the last working day of the year. It utilized $380 of direct materials and $2,860 of direct labor. Altima uses a predetermined overhead allocation rate based on direct labor costs, which has been fixed at 40%. The entry to record the completion of the job should involve a O A. debit to Work - in - Process Inventory $4,384 and a credit to Finished Goods Inventory $4,384 O B. debit to Finished Goods Inventory $4,384 and a credit to Work - in - Process Inventory $4,384 OC. debit to Cost of Goods Sold $4,384 and a credit to Finished Goods Inventory $4,384 O D. debit to Finished Goods Inventory $4,384 and a credit to Materials Inventory $4,384
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Altima, Inc. finished Job A40 on the last working day of the year. It utilized $380 of direct materials and $2,860 of direct labor. Altima uses a predetermined overhead allocation rate based on direct labor costs, which has been fixed at 40%. The
entry to record the completion of the job should involve a
O A. debit to Work - in - Process Inventory $4,384 and a credit to Finished Goods Inventory $4,384
O B. debit to Finished Goods Inventory $4384 and a credit to Work - in - Process Inventory $4,384
OC. debit to Cost of Goods Sold $4,384 and a credit to Finished Goods Inventory $4,384
O D. debit to Finished Goods Inventory $4,384 and a credit to Materials Inventory $4,384
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