Hamilton, which uses a process-costing system, had a balance in its Work-in-Process account of $68,000 on January 1. The account was charged with direct materials, direct labor, and manufacturing overhead of $450,000 throughout the year. If a review of the accounting records determined that $86,000 of goods were still in production at year-end, Hamilton should make a journal entry on December 31 that includes:
Work-in-Process Inventory: Department no. 2.
Finished-Goods Inventory: Department no. 1.
Finished-Goods Inventory: Department no. 2.
Cost of Goods Transferred.
Work-in-Process Inventory: Department no. 1.