Embark Produces Mulch for Landscaping Use

question 144

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 goods transfer from production to finished goods is:

• A) Debit Finished Goods Inventory $432,000; credit Goods in Process Inventory $432,000.
• B) Debit Goods in Process Inventory $444,000; credit Finished Goods Inventory $444,000.
• C) Debit Goods in Process Inventory $432,000; credit Finished Goods Inventory $432,000.
• D) Debit Finished Goods Inventory $444,000; credit Goods in Process Inventory $444,000.
• E) Debit Goods in Process Inventory $432,000; credit Cash $432,000.

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Definitions:

United States

A country in North America consisting of 50 states and a federal district, known for its diverse geography, culture, and economy.

Marginal Revenue Product (MRP)

The change in a firm’s total revenue when it employs 1 additional unit of a resource (the quantity of all other resources employed remaining constant); equal to the change in total revenue divided by the change in the quantity of the resource employed.

Total Revenue

The total amount of money received by a company from the sale of goods or services before any expenses are deducted.

Real Wages

The purchasing power of wages, adjusted for inflation, indicating the quantity of goods and services that can be bought.