During February,Degan Inc

question 104

Multiple Choice

During February,Degan Inc.transferred $60,000 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $65,000.The journal entries to record these transactions would include a:

• A)debit to Finished Goods of $65,000
• B)credit to Cost of Goods Sold of $65,000
• C)credit to Work in Process of $60,000
• D)credit to Finished Goods of $60,000

---

Definitions:

Input

Resources used in the production process to create goods or services, including labor, materials, and capital.

Returns To Scale

An economic concept describing how the increase in inputs affects the level of output of a production process.

Production Function

A mathematical equation that describes the relationship between inputs and the maximum output that can be produced with those inputs.

Inputs

Resources used in the production process, such as labor, capital, materials, and energy.