Kilbuck Company operates in a lean manufacturing environment. Kilbuck applies conversion costs at a rate of $25 per unit. Kilbuck produced 12,000 units during May. Kilbuck's actual conversion costs for the month of May were: The journal entry to record applied conversion costs for May will include a
A)credit to Work in Process Inventory for $300,000
B)debit to Conversion Costs for $300,000
C)credit to Raw and In Process Inventory for $295,000
D)debit to Raw and In Process Inventory for $300,000

Question

Kilbuck Company operates in a lean manufacturing environment. Kilbuck applies conversion costs at a rate of $25 per unit. Kilbuck produced 12,000 units during May. Kilbuck's actual conversion costs for the month of May were:  The journal entry to record applied conversion costs for May will include a
A)credit to Work in Process Inventory for $300,000 
B)debit to Conversion Costs for $300,000 
C)credit to Raw and In Process Inventory for $295,000 
D)debit to Raw and In Process Inventory for $300,000

Quizplus · Accepted Answer

The Answer of Kilbuck Company operates in a lean manufacturing environment. Kilbuck applies conversion costs at a rate of $25 per unit. Kilbuck produced 12,000 units during May. Kilbuck's actual conversion costs for the month of May were:  The journal entry to record applied conversion costs for May will include a
A)credit to Work in Process Inventory for $300,000 
B)debit to Conversion Costs for $300,000 
C)credit to Raw and In Process Inventory for $295,000 
D)debit to Raw and In Process Inventory for $300,000

Kilbuck Company Operates in a Lean Manufacturing Environment