In a Just-In-Time Costing System, the Entry to Record the Sale

question 141

Multiple Choice

In a just-in-time costing system, the entry to record the sale of a manufactured product would include which of the following?

• A) Debit to cost of goods sold
• B) Debit to finished goods inventory
• C) Credit to raw and in process inventory
• D) Credit to conversion costs

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Definitions:

Current Liabilities

Obligations that a company must pay within the coming year or within its normal operating cycle, indicating the company's short-term financial responsibilities.

Non-current Liabilities

Long-term financial obligations listed on a company's balance sheet that are not due within the next 12 months, such as loans, leases, and bond repayments.

Canada Pension Plan

A mandatory retirement savings plan to which employees and employers contribute, providing participants with a predictable income upon retirement.

Payroll Register

A payroll register is a record that details the wages, deductions, and net pay of all employees for each pay period.