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

question 87

Essay

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. Please provide the journal entry to record the cost of goods sold.
$$\begin{array} { | l | l | l | } \hline \quad\quad\quad\quad\quad\quad\quad\quad&\quad\quad &\quad\quad \\\hline & & \\\hline\end{array}$$

---

Definitions:

Ethical Lapses

Instances where individuals or organizations fail to act in accordance with their ethical principles or standards.

Supply Chain

A system involving the production, handling, and distribution of goods and services, from raw materials to the final consumer.

Make-Or-Buy Decision

A strategic choice businesses make between internally manufacturing a product or purchasing it from an external supplier.

Outsourcing

The practice of hiring third-party vendors to perform tasks, handle operations or provide services that are either difficult to manage or outside the expertise of the main business.