Dentlinger Company uses a job-order cost system and had the following data available for 20X2.

-The journal entry to record the cost of goods completed would include a
A) debit to WIP Inventory for $512,000.
B) credit to Finished Goods Inventory for $584,000.
C) credit to Cost of Goods Sold for $512,000.
D) credit to WIP Inventory for $584,000.

Question

Dentlinger Company uses a job-order cost system and had the following data available for 20X2.
 
-The journal entry to record the cost of goods completed would include a
A) debit to WIP Inventory for $512,000. 
B) credit to Finished Goods Inventory for $584,000. 
C) credit to Cost of Goods Sold for $512,000. 
D) credit to WIP Inventory for $584,000.

Quizplus · Accepted Answer

The cost of goods completed is transferred from Work in Process (WIP) Inventory to Finished Goods Inventory, so WIP Inventory is credited.

Dentlinger Company Uses a Job-Order Cost System and Had the Following