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.

Question

Quizplus · Accepted Answer

The correct journal entry to record the transfer of goods from production to finished goods involves debiting Finished Goods Inventory and crediting Goods in Process Inventory for the same amount, reflecting the cost of the goods that have been completed and are now ready for sale.

Embark Produces Mulch for Landscaping Use