Altima Company Finished Job A40 on the Last Working Day

Altima Company finished Job A40 on the last working day of the year. It utilized $400 of direct materials and $3,600 of direct labor. Altima uses a predetermined overhead allocation rate based on 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 $5,440 and a credit to Materials Inventory $5,440.
B) debit to Cost of Goods Sold $5,440 and a credit to Finished Goods Inventory $5,440.
C) debit to Finished Goods Inventory $5,440 and a credit to Work-in-Process Inventory $5,440.
D) debit to Work-in-Process Inventory $5,440 and a credit to Finished Goods Inventory $5,440.