Michael Paints has two processes-Coloring Department and Mixing Department. Michael assigned $385,000 to the 5,500 gallons of paint transferred from Mixing Department to Finished Goods Inventory. The journal entry to record completion of processing is:
A)debit Work-in-Process Inventory-Mixing, $385,000; credit Finished Goods Inventory, $385,000.
B)debit Finished Goods Inventory, $385,000; credit Cost of Goods Sold, $385,000.
C)debit Cost of Goods Sold, $385,000; credit Finished Goods Inventory, $385,000.
D)debit Finished Goods Inventory, $385,000; credit Work-in-Process Inventory-Mixing, $385,000.

Question

Quizplus · Accepted Answer

The correct journal entry to record the transfer of completed goods from the Mixing Department to Finished Goods Inventory is to debit Finished Goods Inventory and credit Work-in-Process Inventory-Mixing.

Michael Paints Has Two Processes-Coloring Department and Mixing Department