18) Under the just- in- time costing system, a credit purchase of raw materials

Question

18) Under the just- in- time costing system, a credit purchase of raw materials is recorded by A) debiting the Raw Materials Inventory account B) debiting the Raw and In-Process Inventory account O crediting the Conversion Costs account D) crediting the Cash account 19) Identify the breakeven point in the graph given below 19) A) E B) B D) D 20) Periphery, Inc. has two products-picture frames and candle holders. Financial data for both the 20) products follow: Units sold Sales price per unit Variable manufacturing cost Sales commission (% of sales) Frames 2100 unit $700 300 5% Candle Holders 700 unit $1200 650 3% Periphery has two sales representatives-Andrew Novak and Liu Wei, Each sales representative sol total of 1400 units during the month of March. Andrew had a sales mix of 70% picture frames and 30% candle holders, Liu had a sales mix of 80% picture frames and 20% candle holders. What is the contribution margin ratio for picture frames and candle holders, respectively? A) 52% 43% B) 5%:3% C) 43%,54% D) 57%, 46% A) cost of goodssold budget C) cash budget B) operating budget 22) Monitoring operations and keeping the company on track is part of the 22) A) controlling function O) directing function B) strategic function D) planning function 23) The journal entry to record direct labor costs actually incurred involves a debit to the 23) A) Wages Payable account ) Work-in-Process Inventory account B) Manufacturing Overhead account D) Raw Materials Inventory account

Explanation / Answer

Q18.

Answer is B. Debiting the raw and in process inventory Account

The explanantion is as follows:

In Just in time inventory, the raw material is purchased as and when required for the issue to production. Therefore, no raw material inventory is being kept in hand. Therefore, as and when raw material inventory is purchased, it is directly issued to production. Thats why, it is directly debited to Raw and In process Inventory account.

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