In a just-in-time costing system, any remaining balance in the conversion costs account at the end of an accounting period is usually cleared to which account?
A) Raw and in process inventory
B) Cost of goods sold
C) Work in process inventory
D) Finished goods inventory

Question

Quizplus · Accepted Answer

In a just-in-time costing system, the remaining balance in the conversion costs account at the end of an accounting period is typically cleared to the Cost of Goods Sold account. This is because, in such systems, costs are closely aligned with production and sales, and any remaining conversion costs are considered part of the cost of goods that have been sold during the period.

In a Just-In-Time Costing System, Any Remaining Balance in the Conversion