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

question 49

Multiple Choice

Johnson Production Company uses just-in-time production and accounting methods. On June 1, Johnson sold 200 units of product for $12.00 per unit. Each unit included $8.00 of direct materials cost and $2.00 of conversion costs. Johnson recorded the revenues of $2,400 in one entry, and then recorded the cost of goods sold in a second entry. Which of the following correctly records the cost of goods sold?

• A) Debit $2,000 to Cost of goods sold, credit $2,000 to Finished goods inventory.
• B) Debit $2,000 to Finished goods, credit $1,600 to Raw and in-process, credit $400 to Conversion costs.
• C) Debit $1,600 to Conversion costs, debit $400 to Materials inventory, credit $2,000 to Cost of goods sold.
• D) Debit $2,000 to Cost of goods sold, credit $2,000 to Raw and in-process inventory.

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Definitions:

Suicide Rates

The number of suicides occurring within a given population and time period, usually expressed per 100,000 individuals per year.

Non-college Peers

Individuals who have not pursued or completed higher education beyond high school, often referenced in studies examining social and economic outcomes.

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The statistical measurement of the number of suicides occurring among a population in a given geographical area and timeframe.

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The amount of broadcast time allocated to particular content, programs, or advertisements on radio or television.