This Question 2 pts 7 of 55 0 completeThis Test 150 pts poss

This Question: 2 pts 7 of 55 (0 complete)This Test: 150 pts possib Garcia Manufacturing has two processes-Coloring and Mixing. The company assigned $360,000 to the 4,500 gallons of paint transferred from Mixing Department to Finished Goods Inventory. The journal entry to record this assignment of cost is O A. debit Cost of Goods Sold, $360,000; credit Finished Goods Inventory, $360,000 O B. debit Work-in - Process Inventory-Mixing, $360,000; credit Finished Goods Inventory, $360,000 O C. debit Finished Goods Inventory, $360,000; credit Work - in - Process Inventory-Mixing, $360,000 O D. debit Finished Goods Inventory, $360,000; credit Cost of Goods Sold, $360,000

Solution

The Correct Journal Entry would be

Debit Credit

Finished Good Inventory $360000

Work in Process Inventory $360000

Because we transferred the $360000 Inventort from Mixing which is Work in Process to Finished Inventory and Inventory is an asset which increases by Debit and Decreases by Credit