Altima, Inc
Subject:AccountingPrice:2.87 Bought7
Altima, Inc. finished Job A40 on the last working day of the year. It utilized $370 of direct materials and? $3,420 of direct labor. Altima uses a predetermined overhead allocation rate based on a percentage of direct labor costs, which has been fixed at 40%. The entry to record the completion of the job should involve a ________.
A debit to Finished Goods Inventory S5.158 and a credit to Materials lnventory S5,158
B. debit to Cost of Goods sold $5,158 and a credit to Finished Goods inventory $5,158
C. dobit to Work-in-Process inventory $5,158 and a credit to Finished Goods Inventory S5,158
D. debit to Finished Goods iment Dry$5.158 and a credit to Work-in-Process Inventory s5.158
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Answer:
Journal entry :
| Date | account & explanation | debit | credit |
| Finished goods inventory | 5158 | ||
| Work in process inventory | 5158 |
So answer is d) Debit to finished goods inventory $5158 and a credit to work in process inventory $5158
