Use the following partial Process Cost report to prepare the journal entry necessary to move the costs of the completed goods out of the Goods in Process Inventory.

Step 4: Assign and reconcile costs.

Costs of EUP completed and transferred out:

Direct Materials (80,000 EUP * $8.75/EUP)

$700,000

Direct Labor & Factory OHD (80,000 EUP * $25.20/EUP)

$2,016,000

Total costs of units completed and transferred out

$2,716,000

Costs of EUP in Ending Goods in Process:

Direct Materials (8,000 EUP * $8.75/EUP)

$70,000

Direct Labor & Factory OHD(2,000 EUP * $25.20/EUP)

50,400

Total costs of Ending GIP Inventory

$120,400

Total costs accounted for

$2,836,400

a. Debit Finished Goods Inventory $2,836,400 and Credit Goods In Process Inventory $2,836,400

b. Debit Finished Goods Inventory $2,716,000 and Credit Goods In Process Inventory $2,716,000

c. Debit Credit Goods In Process Inventory $2,716,000 and Finished Goods Inventory $2,716,000

d. Debit Finished Goods Inventory $120,400 and Credit Goods In Process Inventory $120,400

e.Debit Cost of Goods Sold $2,716,000 and Credit Goods In Process Inventory $2,716,000