Which of the Following Pertains to a Just-In-Time Production System

question 116

Multiple Choice

Which of the following pertains to a just-in-time production system?

• A) Direct materials and work in process are combined into a conversion inventory account.
• B) Direct materials and work in process are combined into a raw and in process inventory account.
• C) Work in process and conversion costs are combined into a raw and in process inventory account.
• D) Direct materials and conversion costs are combined into a raw and in process inventory account.

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Definitions:

Processing Department

A specific location or unit within a manufacturing facility where a distinct process or series of processes occur for the production of goods.

Equivalent Unit

A measure used in cost accounting to express the amount of work done on partially finished goods as an equivalent number of fully finished units.

Processing Department

A division within a manufacturing facility where a specific type of production activity or process is carried out.

Materials

The raw items, components, or substances used in the production of goods.