Hornsby has a single production department, and uses a process$-$costing system. The balance in its Work$-$in$-$Process account on January $1$ was $$125,000.$ The account was charged with direct materials, direct labor, and manufacturing overhead of $$454,000$ throughout the year. If a review of the accounting records determined that $$154,000$ of goods were still in production at year$-$end, Hornsby should make a journal entry on December $31$ that includes:

Multiple Choice

a debit to Cost of Goods Sold for $$425,000.$

a debit to Finished$-$Goods Inventory for $$425,000.$

a debit to Work$-$in$-$Process Inventory for $$425,000.$

a debit to Finished$-$Goods Inventory for $$154,000.$

a credit to Work$-$in$-$Process Inventory for $$154,000.$