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:

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Economists who advocate for theories focusing on supply and demand as drivers of price and output in markets, emphasizing the role of individuals’ rational choices in resource allocation.

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Behavioral Economics

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