UESTION 16

1. Fairfield, Inc. uses job order costing and finished Job 10, which used $370 of direct materials and $3,420 of direct labor. The firms predetermined overhead rate for the year is $0.40 of allocated overhead per dollar of direct labor costs (i.e.: 40% of direct labor costs). The journal entry to record the completion of this job should be:

   A.

   Dr. Work-in-Process Inventory	1,368
   Cr. Finished Goods Inventory		1,368

   B.

   Dr. Finished Goods Inventory	1,368
   Cr. Work-in-Process Inventory		1,368

   C.

   Dr. Work-in-Process Inventory	5,158
   Cr. Finished Goods Inventory		5,158

   D.

   Dr. Finished Goods Inventory	5,158
   Cr. Work-in-Process Inventory		5,158