Question

Munos Publishing Company uses a job-order costing system to collect costs related to the manufacture of specialty publications for corporate training.What journal entry would Munos make to record the completion of Job KN668 as a total cost of $7,600?A) Work in Process______________7,600____Finished Goods_______________7,600B) Cost of Goods Manufactured_____7,600___Work in Process_______________7,600C) Finished Goods______________7,600___Work in Process_______________7,600D) Cost of Goods Manufactured_____7,600___Finished Goods_______________7,600

Answer 1

Answer:

C) Finished Goods______________7,600

Work in Process_______________7,600

Explanation:

Whenever a job is completed, finished goods are created, and as every process has some steps.

Accordingly, the finished goods are created from work in process, and for this the inventory in work in process is no more left, for this it is credited, and the finished goods are created therefore, they are debited.

The entry for this will be:

Finished Goods A/c Dr.       $7,600

         To Work In Process                 $7,600

In job order costing, completion of job relates to completion task like producing goods, which relates to finished goods manufactured.