Question

Caltran, Inc. completed manufacturing Job 445. It included $310 of direct materials cost, $1220 of direct labor cost, and $560 of allocated manufacturing overhead. Which of the following is the correct journal entry needed to record the completed job?

a. Work — in — Process Inventory 1530
Cost of Sold 1530

b. Work — in — Process Inventory 2090
Finished Inventory 2090

c. Finished Goods Inventory 2090
Work — in — Inventory 2090

d. Finished Goods Inventory 2090
Materials Inventory 2090

Answer 1

Dr Finished Goods Inventory​2,090

Cr Workminus−inminus−Process Inventory

​2,090

Step-by-step explanation:

Preparation of the correct journal entry needed to record the completed job

Based on the information given the correct journal entry needed to record the completed job will be :

Dr Finished Goods Inventory​2,090

Cr Workminus−inminus−Process Inventory

​2,090

Calculated as:

Direct materials​ cost $310

Direct labor​ cost $1,220

Allocated manufacturing overhead $560

=2,090