Johnson Production Company Uses Just-In-Time Production and Accounting Methods

question 11

Multiple Choice

Johnson Production Company uses just-in-time production and accounting methods. On June 1, Johnson paid direct labor costs of $5,000 in cash. Which of the following journal entries correctly records this transaction?

• A) Debit $5,000 to Cash, credit $5,000 to Conversion costs.
• B) Debit $5,000 to Conversion costs, credit $5,000 to Cash.
• C) Debit $5,000 to Manufacturing overhead, credit $5,000 to Cash.
• D) Debit $5,000 to Raw and in-process inventory, credit $5,000 to Cash.

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Definitions:

Parallel Processing

The brain's ability to simultaneously process incoming stimuli of differing quality, critical in functions like vision.

Feature Detection

The process by which the brain identifies specific elements of visuals, like shapes or angles, important in recognizing objects and patterns.

Opponent Processing

A theory describing how the human visual system interprets color by processing signals from cones and rods in an antagonistic manner.

Accommodation

In cognitive psychology, the process by which individuals adjust their schemas (mental models) to incorporate new information.