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

question 123

Multiple Choice

In a just-in-time costing system, the entry to record the standard cost of finished goods completed would include which of the following?

• A) Debit to finished goods inventory
• B) Debit to conversion costs
• C) Debit to cost of goods sold
• D) Credit to sales

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Definitions:

Frustration

Interference with a contract by some outside, unforeseen event that makes performance impossible or essentially different in nature.

Equitable Remedy

A judicial order enforcing a party to act or refrain from acting in a certain way, used when monetary compensation does not suffice to resolve a legal dispute.

Frustration Clause

A frustration clause in a contract is a provision that releases both parties from their obligations if an unforeseeable event occurs, making it impossible to fulfill the contract.

Tomato Crop

Refers to the cultivation and production of tomatoes as an agricultural activity.