Question
Que Corporation uses a process cost accounting system. The company manufactured certain goods at a cost of $800 and sold them on credit to Are Corporation for $1, 075 The complete journal entry to be made by Que at the time of this sale is: Debit Accounts Receivable $1, 075; credit Sales $1, 075; debit Cost of Goods Sold $800; credit Finished Goods Inventory $800. Debit Accounts Receivable $1, 075; credit Sales $275; credit Finished Goods Inventory $800. Debit Cost of Goods Sold $1, 075; credit Sales $1, 075. Debit Finished Goods Inventory $800; debit Sales $1, 075; credit Accounts Receivable $1, 075; credit Cost of Goods Sold $800. Debit Accounts Receivable $1, 075; debit Selling expense $800; credit Sales $1, 075; credit Cost of Goods Sold $800. Docksider Boats uses a job order cost accounting system. During one month Docksider purchased $153, 000 of raw materials on credit; issued materials to production of $164, 000 of which $24, 000 were indirect. Docksider incurred a factory payroll of $95, 000, paid in cash, of which $25, 000 is classified as indirect labor. Docksider uses a predetermined overhead application rate of 170% of direct labor cost. The journal entry to record the application of factory overhead to production is: Debit Goods in Process Inventory $55, 800; credit Factory Overhead $55, 800. Debit Goods in Process Inventory $161, 500; credit Factory Overhead $161, 500. Debit Goods in Process Inventory $119, 000; credit Factory Overhead $119, 000. Debit Factory Overhead $119, 000; credit Goods in Process Inventory $119, 000. Debit Goods in Process Inventory $95, 000; credit Factory Payroll $95, 000.
Explanation / Answer
B D