Johnson Production Company uses just-in-time production and accounting methods. On June 1, Johnson paid $6,000 for factory repair and maintenance costs in cash. Which of the following journal entries correctly records this transaction?
A) Debit $6,000 to Cash, credit $6,000 to Manufacturing overhead.
B) Debit $6,000 to Raw and in-process inventory, credit $6,000 to Cash.
C) Debit $6,000 to Conversion costs, credit $6,000 to Cash.
D) Debit $6,000 to Manufacturing overhead, credit $6,000 to Cash.

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The Answer of Johnson Production Company uses just-in-time production and accounting methods. On June 1, Johnson paid $6,000 for factory repair and maintenance costs in cash. Which of the following journal entries correctly records this transaction?
A) Debit $6,000 to Cash, credit $6,000 to Manufacturing overhead.
B) Debit $6,000 to Raw and in-process inventory, credit $6,000 to Cash.
C) Debit $6,000 to Conversion costs, credit $6,000 to Cash.
D) Debit $6,000 to Manufacturing overhead, credit $6,000 to Cash.

Johnson Production Company Uses Just-In-Time Production and Accounting Methods