Alpine Products, which manufactures snow skis for national ski teams, uses a normal costing system and computes its predetermined factory overhead rate annually on the basis of direct labor hours.

The following is known for the recently completed year:

	Budgeted	Actual
Total Factory Overhead	$288,000	$298,900
Direct Labor Hours	12,000 hrs	12,200 hrs

Which one of the following is correct (true) with respect to journal entries needed for a job of 50 pair of skis ordered by the Canadian ski team from Alpine Products?

A.

COGS (cost of goods sold) will be debited when the skis are completed and moved off the production line.

B.

Factory Overhead will be debited for raw material inventory placed into production.

C.

WIP (work-in-process inventory) will be debited for direct labor cost.

D.

FG (finished goods) Inventory will be debited for factory overhead applied to production.