On June 30, Coral Company finished Job 750, with total job costs of $4,600, and transferred the costs to Finished Goods Inventory. On July 6, they completed the sale of the goods to a customer for $5,100 cash. In order to record the sale, two entries are necessary, one to record revenue, and one to record cost of goods sold. Which of the following is the correct journal entry to record the cost of goods sold?

Question

Quizplus · Accepted Answer

The correct journal entry to record the cost of goods sold is to debit Cost of Goods Sold and credit Finished Goods Inventory. This is because the costs of producing the goods are transferred from Finished Goods Inventory to Cost of Goods Sold when the goods are sold to a customer. Option D is the correct entry as it debits Cost of Goods Sold and credits Finished Goods Inventory for the amount of $4,600.

On June 30, Coral Company Finished Job 750, with Total