In a just-in-time environment using backflush costing,the entry to record the use of materials for the month's production is debit __________ and credit __________.
A)Work in Process Inventory;Materials Inventory
B)Cost of Goods Sold;Finished Goods Inventory
C)Conversion Costs;Accounts Payable
D)No entry

Question

Quizplus · Accepted Answer

In a just-in-time (JIT) environment using backflush costing, traditional journal entries for each step of the manufacturing process (like recording the use of materials) are not made. Instead, costs are flushed back at the end of the process, often upon the sale of finished goods, simplifying the accounting process.

In a Just-In-Time Environment Using Backflush Costing,the Entry to Record