Question

1. The journal entry to recognize depreciation on machinery would include a debit to Factory Overhead. debit to Accumulated Depreciation. credit to Factory Overhead. None of these choices are correct. 2. The journal entry to record the transfer from work in process to finished goods would include a debit to Work in Process. Finished Goods. Cost of Goods Sold. None of these choices are correct.

Answer 1

Answer:

1. The journal entry to recognize depreciation on machinery would include

= None of these choices are correct.

2. The journal entry to record the transfer fro work in process to finished goods would include a debit to

= Finished Goods.

Explanation:

a) The correct journal entry is a debt to Depreciation on Machinery and a credit to Accumulated Depreciation on Machinery.  However, when the Depreciation is being transferred to Work in Process, the debit goes to Work in Process with the credit going to the Depreciation on Machinery account.

b) The corresponding credit entry is a credit to Work in Process.