View History Bookmarks Window Help 8 40 100 Bu Fri 555 PM e

View History Bookmarks Window Help 8.. 40 100% Bu, Fri 5:55 PM e Edit Acct 1090 V0850 2018WI (A Test: Week #2 Exam #4 This Question: 1 pt Kyle Maisano 1 1/19/18 555 P Time Remaining: 0045:56 Submit T This Test: 18 pts poss 110418 (1 complete) Altima, Inc. firished Job A40 on the last working day of the year R uitlzed $300 of direct materials and $3,380 ofdirct labor. Altima uses a predetermined overhead My allocation rato based on a perertageofdirect-bor ents, which has beenhad at 40% The erty boom e eeepleton d the job OA. debit to Finished Goods Inventory $5,032 and a credit to Materials Inventory $5,032 OB debit to Cost of Goods Sold $5,032 and a credit to Finished Goods Inventory $5,032 O C. debit to Work-in-Process Inventony $5,032 and a credit to Finished Goods Invertiory $5,032 O D. debit to Finished Goods Inventory $5,032 and a credit to Work-in-Process Inventory $5.032 Do Gick to select your answer 6 0

Solution

Answer is option (D) Debit to finished goods Invenotry $5032 and credit to work in Process invenotry $5032 Total Cost of Job A40 Amount in $ Direct materials cost 300 Direct Labour cost 3380 Over head cost 1352 Total Job cost of A40 5032 Over head Cost = Dirct labour cost * Predetermined Over head rate =$1352 Journal Entry for Completion of Job A40 Acconting titles & Explanation debit Credit Finished goods inventory A/c $5032            To Work in process Inventory A/c $5032 (Being Job A40 Transferred from work in process to Finished goods invenotry)