Hornsby has a single production department, and uses a process-costing system. The balance in its Work- in-Process account on January 1 was $68,000. 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 S86,000 of goods were still in production at year-end, Hornsby should make a journal entry on December 31 that includes: A) a credit to Work-in-Process Inventory for s86,000. B) a debit to Work-in-Process Inventory for $432,000 C) a debit to Cost of Goods Sold for $432,000. D) a debit to Finished-Goods Inventory for $432,000. E) a debit to Finished-Goods Inventory for $86,000.

Hornsby has a single production department, and uses a process-costing system. The balance in its Work- in-Process account on January 1 was $68,000. 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 S86,000 of goods were still in production at year-end, Hornsby should make a journal entry on December 31 that includes: A) a credit to Work-in-Process Inventory for s86,000. B) a debit to Work-in-Process Inventory for $432,000 C) a debit to Cost of Goods Sold for $432,000. D) a debit to Finished-Goods Inventory for $432,000. E) a debit to Finished-Goods Inventory for $86,000.

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Description: Hornsby has a single production department, and uses a process-costing system. The balance in its Work-in-Process account on January 1 was $68,000. The account was charged with direct materials, direct labor,and manufacturing overhead of $450,000 th

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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