In a Just-In-Time Environment Using Backflush Costing,the Entry to Record

question 43

Multiple Choice

In a just-in-time environment using backflush costing,the entry to record the use of materials for the month's production is debit __________ and credit __________.

• A)Work in Process Inventory;Materials Inventory
• B)Cost of Goods Sold;Finished Goods Inventory
• C)Conversion Costs;Accounts Payable
• D)No entry

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Definitions:

Posting

The process of transferring accounting entries from the journal to the ledger accounts.

Account

A record summarizing all transactions related to a particular item in the financial statements.

Accounts Receivable

Money owed to a company by its clients or customers for goods or services delivered but not yet paid for.

Credit Sales

Sales made by a business where payment is not received at the time of sale but is instead deferred to a future date, typically involving an agreement or credit terms.