Use the Information Above to Answer the Following Question

question 128

Multiple Choice

Use the information above to answer the following question.If the company is preparing financial statements 3 months after this transaction,what is the necessary adjusting entry?

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Weighted-Average Method

An inventory costing method that averages the cost of goods available for sale, used to determine the cost of goods sold and ending inventory.

Mixing Department

A specific section within a manufacturing setup where materials are combined to produce a product.

Equivalent Units

An approach in process costing that transforms units that are only partly finished into an equivalent number of entirely completed units, facilitating accounting procedures.

First-In, First-Out Method

An accounting method for valuing inventory where the first items purchased are the first ones removed from inventory, reflecting costs in the order they were incurred.