Question

​Altima, Inc. finished Job A40 on the last working day of the year. It utilized

$330

of direct materials and

$3,210

of direct labor. Altima uses a predetermined overhead allocation rate based on direct labor​ costs, which has been fixed at​ 40%. The entry to record the completion of the job should involve a​ ________.

a

debit to Finished Goods Inventory

$4,824

and a credit to Materials Inventory $4,824

B.debit to Cost of Goods Sold

$4,824

and a credit to Finished Goods Inventory $4,824

C.debit to

Workminus−inminus−Process

Inventory

$4,824

and a credit to Finished Goods Inventory $4,824

D.debit to Finished Goods Inventory

$4,824

and a credit to

Workminus−inminus−Process

Inventory $4,824

Answer 1