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

Question

Quizplus · Accepted Answer

In a just-in-time costing system, there is no finished goods inventory. Instead, products are manufactured in response to customer orders. Therefore, when a product is sold, the cost of the goods sold is recorded with a debit to cost of goods sold.

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