Embark Produces Mulch for Landscaping Use

question 90

Multiple Choice

Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for direct labor usage is:

• A) Debit Factory Payroll $160,000; credit Cash $160,000.
• B) Debit Goods in Process Inventory $160,000; credit Factory Payroll $160,000.
• C) Debit Cost of Goods Sold $160,000; credit Factory Payroll $160,000.
• D) Debit Goods in Process Inventory $160,000; credit Raw Materials Inventory $160,000.
• E) Debit Goods in Process Inventory $160,000; credit Cash $160,000.

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Definitions:

Marginal Utility

The extra pleasure or benefit gained by a consumer from consuming an additional unit of a product or service.

Marginal Utility

The additional satisfaction or utility gained from consuming an extra unit of a good or service.

Water-Diamond Paradox

A concept in economics that questions why diamonds are more expensive than water despite water being essential for survival and diamonds not.

Marginal Utility

The additional satisfaction or benefit received from consuming one more unit of a good or service.