Harrington Industries, which uses a process-costing system, had a balance in its Work-in-Process account of s115,000 on January 1 The account was charged with direct materials, direct labor, and manufacturing overhead of $508.000 throughout the year. If a review of the accounting records determined that $137,000 of goods were still in production at year-end, Harrington should make a journal entry on December 31 that Includes: • a debit to Cost of Goods Sold for S484,000. • a credit to Finished-Goods Inventory for $484,000. • a credit to Work-in-Process Inventory for $484,00o. a debit to Finished-Goods Inventory for $137,000. a credit to Work-in-Process Inventory for $137,000.

Harrington Industries, which uses a process-costing system, had a balance in its Work-in-Process account of s115,000 on January 1 The account was charged with direct materials, direct labor, and manufacturing overhead of $508.000 throughout the year. If a review of the accounting records determined that $137,000 of goods were still in production at year-end, Harrington should make a journal entry on December 31 that Includes: • a debit to Cost of Goods Sold for S484,000. • a credit to Finished-Goods Inventory for $484,000. • a credit to Work-in-Process Inventory for $484,00o. a debit to Finished-Goods Inventory for $137,000. a credit to Work-in-Process Inventory for $137,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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