Hamilton, which uses a process-costing system, had a balance in its Work-in-Process account of $89,000 on January 1. The account was charged with direct materials, direct labor, and manufacturing overhead of $467,000 throughout the year. If a review of the accounting records determined that $122,000 of goods were still in production at year-end, Hamilton should make a journal entry on December 31 that includes:

1. a debit to Finished-Goods Inventory for $122,000.

2. a credit to Finished-Goods Inventory for $434,000.

3. a credit to Work-in-Process Inventory for $434,000.

4. a debit to Cost of Goods Sold for $434,000.

5. a credit to Work-in-Process Inventory for $122,000.