Journal Entry December 31.

Smith Manufacturing uses a process-costing system. The balance in the Work-in-Process account was $125,000 as of January 1 . The account was charged with direct materials, direct labor, and manufacturing overhead of $454,000 throughout the year. If a review of the accounting records determined that $154,000 of goods were still in production at year-end, Smith should make a journal entry on December 31 that includes: Multiple Choice a debit to Cost of Goods Sold for $425,000. a credit to Finished-Goods Inventory for $425,000. a credit to Work-in-Process Inventory for $154,000. a credit to Work-in-Process Inventory for $425,000. a debit to Finished-Goods Inventory for $154,000