Hornsby has a single production department, and uses a process-costing system. The balance in its Work- in-Process account on January 1 was $68,000. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that S86,000 of goods were still in production at year-end, Hornsby should make a journal entry on December 31 that includes: A) a credit to Work-in-Process Inventory for s86,000. B) a debit to Work-in-Process Inventory for $432,000 C) a debit to Cost of Goods Sold for $432,000. D) a debit to Finished-Goods Inventory for $432,000. E) a debit to Finished-Goods Inventory for $86,000.

Hornsby has a single production department, and uses a process-costing system. The balance in its Work- in-Process account on January 1 was $68,000. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that S86,000 of goods were still in production at year-end, Hornsby should make a journal entry on December 31 that includes: A) a credit to Work-in-Process Inventory for s86,000. B) a debit to Work-in-Process Inventory for $432,000 C) a debit to Cost of Goods Sold for $432,000. D) a debit to Finished-Goods Inventory for $432,000. E) a debit to Finished-Goods Inventory for $86,000.

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Description: Hornsby has a single production department, and uses a process-costing system. The balance in its Work-in-Process account on January 1 was $68,000. The account was charged with direct materials, direct labor,and manufacturing overhead of $450,000 th

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 2BE: Kraus Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots From...

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