Squirrel Co

question 114

Multiple Choice

Squirrel Co.operates in a lean manufacturing environment.For June production,Squirrel purchased 6,000 units of raw materials at $6.00 per unit on account.The journal entry required to record this transaction is:

• A) Raw and In Process Inventory 36,000
• Accounts Payable 36,000
• B) Cost of Goods Manufactured 36,000
• Accounts Payable 36,000
• C) Finished Goods 36,000
• Accounts Payable 36,000
• D) Raw Materials Inventory 36,000
• Accounts Payable 36,000

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Definitions:

Reasonable Reliance

The dependence by one party on the representations or promises of another where such reliance is logically or legally justifiable.

Material Fact

Information that is significant enough to influence a decision, especially pertinent in contract and disclosure laws.

Utah Law

Law specific to the state of Utah, governed by state legislation and legal precedents within Utah jurisdiction.

Public Record

Documents or pieces of information that are not considered confidential and are kept by government agencies, available for public access and inspection.