Cooper Incorporation, Which Uses a Process-Costing System, Had a Balance

Cooper Incorporation, which uses a process-costing system, had a balance in its Work-in-Process account of $81,000 on January 1. The account was charged with direct materials, direct labour, and manufacturing overhead of $515,000 throughout the year. If a review of the accounting records determined that $80,000 of goods were still in production at year-end, Cooper should make a journal entry on December 31 that includes:

A) a debit to Cost of Goods Sold for $516,000.
B) a credit to Finished-Goods Inventory for $516,000.
C) a credit to Work-in-Process Inventory for $516,000.
D) a debit to Finished-Goods Inventory for $80,000.
E) a credit to Work-in-Process Inventory for $80,000.

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