In Mynex Company, Job No. 26 is completed at a cost of $4,500 and later sold for $7,000 cash. A correct entry is debit Finished Goods Inventory $4,500 and credit Work in Process Inventory $4,500. debit Cost of Goods Sold $7,000 and credit Finished Goods Inventory $7,000. debit Accounts Receivable $7,000 and credit Sales $7,000. debit Finished Goods Inventory $7,000 and credit Work in Process Inventory $7,000.

Question

Business

Serena Osborn

1 February, 15:04

In Mynex Company, Job No. 26 is completed at a cost of $4,500 and later sold for $7,000 cash. A correct entry is debit Finished Goods Inventory $4,500 and credit Work in Process Inventory $4,500. debit Cost of Goods Sold $7,000 and credit Finished Goods Inventory $7,000. debit Accounts Receivable $7,000 and credit Sales $7,000. debit Finished Goods Inventory $7,000 and credit Work in Process Inventory $7,000.

+4

Answers (1)

Know the Answer?

Valeria Hess · Answer 1

The first seat is correct. The availability of the product for sale is recognized and its production process is completed

Inventory 4.500

WiP 4.500

Explanation:

The second record is wrong because it takes the sale price as the cost of sold inventory and not its production / acquisition cost.

the third registry uses credit accounts, and it was made in cash

the fourth record records the inventory for the sale price and not for the cost of production