Embark Produces Mulch for Landscaping Use

question 123

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 overhead allocation is:

• A) Debit Factory Overhead $248,000; credit Cash $248,000.
• B) Debit Goods in Process Inventory $160,000; credit Factory Payroll $160,000.
• C) Debit Goods in Process Inventory $248,000; credit Factory Overhead $248,000.
• D) Debit Goods in Process Inventory $160,000; credit Factory Overhead $160,000.
• E) Debit Goods in Process Inventory $160,000; credit Cash $160,000.

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Definitions:

Oligopolization

describes the process whereby a market becomes dominated by a few large companies, reducing competition.

Cutthroat Competition

An extremely aggressive competition where companies use strategies to undercut their rivals' prices.

Cartel

A coalition of producers or vendors aimed at keeping prices elevated by limiting competitive practices.

Concentration Ratio

Concentration ratio is a measure of the total output produced in an industry by a given number of firms, indicating the level of market competition.