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Here is some basic data for Callor Corporation:
| Beginning raw materials inventory | $36,000 |
| Beginning finished goods inventory | 54,000 |
| Cost of direct materials requisitioned | 85,000 |
| Actual manufacturing overhead | 162,000 |
| Cost of goods sold | 260,000 |
| Beginning work in process inventory | 64,000 |
| Cost of materials purchased | 148,000 |
| Direct labour incurred | 135,000 |
| Completed goods | 295,000 |
| Manufacturing overhead rate (% of direct labour) | 125% |
At Callor Corporation, the entry to record the cost of goods completed would include
Select one:
a. a credit to work in process inventory for $260,000.
b. a debit to work in process inventory for $260,000.
c. a credit to finished goods inventory for $295,000.
d. a debit to finished goods inventory for $295,000.
Please kindly explain the answer. Thank you
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