Kilbuck Manufacturing Operates in a Lean Manufacturing Environment

question 107

Multiple Choice

Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck's actual conversion costs for the month of May follow: Direct and indirect labor
$150,000
Machine depreciation
85,000
Maintenance and supplies
60,000
Total conversion costs
$295,000
The journal entry to record May's conversion costs will include:

• A) a credit to Work in Process Inventory
• B) a debit to Raw Materials Inventory
• C) a credit to Raw and In Process Inventory
• D) a debit to Raw and In Process Inventory

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Definitions:

Income

Regular financial earnings from work or investment activities.

Lemonade

A sweetened beverage made from lemon juice, water, and sugar, commonly consumed cold.

Pretzels

A type of baked pastry made from dough that is commonly shaped into a knot or twisted form, often savory or sweetened.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and prices of goods.