Altima Inc.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
Correct Answer:
Verified
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