Question

Kilbuck manufacturing operates in a lean manufacturing environment. kilbuck's actual conversion costs for the month of may follow: direct and indirect labor $150,000 machine depreciation 85,000 maintenance and supplies 60,000 total conversion costs $295,000 the journal entry to record may's conversion costs will include:

Answer 1

Kilbuck Manufacturing operates in a lean manufacturing environment. Kilbuck’s actual conversion costs for the month of May follow:
Direct and indirect labor $150,000
Machine depreciation $85,000
Maintenance and supplies $60,000
Total conversion costs $295,000
The journal entry to record April's conversion costs will include:
D. A debit to Raw and In Process Inventory

Raw materials of all kinds are measured at the start recorded into a list plus account with a debit to the raw materials inventory account and a credit to the accounts collectible account.When raw materials are consumed, the accounting treatment varies, betting on their standing as direct or indirect materials.