Embark produces mulch for landscaping use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:
A) Debit Raw Materials Inventory $87,000; credit Accounts Payable $87,000.
B) Debit Raw Materials Inventory $87,000; credit Finished Goods Inventory $87,000.
C) Debit Cost of Goods Sold $87,000; credit Finished Goods Inventory $87,000.
D) Debit Goods in Process Inventory $87,000; credit Raw Materials Inventory $87,000.
E) Debit Goods in Process Inventory $87,000; credit Cost of Goods Sold $87,000.

Question

Quizplus · Accepted Answer

When recording the usage of direct materials in production, the cost of these materials is transferred from Raw Materials Inventory to Goods in Process Inventory, reflecting the movement of materials into the production process.

Embark Produces Mulch for Landscaping Use