Latta Coffee Ltd Has Two Main Processes: Roasting and Packaging

question 87

Multiple Choice

Latta Coffee Ltd has two main processes: roasting and packaging. Roasted coffee beans are transferred to the packaging department before the final product is shipped to customers. The following information for the month of April for the Roasting department is available: total cost of goods completed and transferred from Roasting department to Packaging department is $25 000; ending work in progress in April is $1000; number of equivalent units of conversion is 5000 units.
Which of the following journal entries is appropriate at the end of April?

• A) Debit Packaging Department $26 000, Credit Roasting Department $26 000
• B) Debit Packaging Department $25 000, Credit Roasting Department $25 000
• C) Debit Roasting Department $26 000, Credit Packaging Department $26 000
• D) Debit Roasting Department $25 000, Credit Packaging Department $25 000

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Definitions:

Cross-Selling

The practice of suggesting related products or services to a customer who is considering or making a purchase, with the aim of increasing sales.

Formula Selling

A predefined, structured approach to sales that follows a specific formula or set of rules.

Upselling

A sales technique where a seller induces the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.

Need-Satisfaction

A marketing approach focused on identifying and fulfilling the specific needs and desires of customers.