7. Williams Company uses a job-order costing system and has the following data available: Beginning Direct Materials Inventory Beginning Work-In-Process Inventory Beginning Finished Goods Inventory Direct materials purchased on account Direct materials requisitioned Direct labor cost incurred Factory overhead incurred Cost of goods completed Cost of Goods Sold Overhead application rate (based on direct labor cost) $26,000 $64,000 $58,000 $148,000 $82,000 $130,000 $146,000 $292,000 $256,000 125% The journal entry to record the cost of goods completed would include a A) Credit to Finished Goods Inventory for $292,000 B) Credit to Cost of Goods Sold for $256,000 C) Debit to Work-In-Process Inventory for $256,000 D) Credit to Work-In-Process Inventory for $292,000 Answer 8. A home builder just completed the construction of a new home. The home builder uses job-order costing. Costs of $200,000 were incurred to construct the home. The home is ready for sale and is listed with a real estate broker. Which of the following journal entries is necessary when the home is completed? A) Work-In-Process Inventory B) Finished Goods Inventory C) Finished Goods Inventory D) Cost of Goods Sold Answer Direct Materials Inventory Direct Materials Inventory Work-In-Process Inventory Finished Goods Inventory $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000