Altima Company finished Job A40 on the last working day of the year.It utilised $1300 of direct materials and $4600 of direct labour.Altima uses a predetermined overhead allocation rate based on percentage of direct labour costs,which has been fixed at 40%.The entry to record the completion of the job should involve a:
A) debit to Cost of sales $7740 and a credit to Finished goods inventory $7740.
B) debit to Work in process inventory $7740 and a credit to Finished goods inventory $7740.
C) debit to Finished goods inventory $7740 and a credit to Work in process inventory $7740.
D) debit to Finished goods inventory $7740 and a credit to Materials inventory $7740.
Correct Answer:
Verified
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