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:
Direct and indirect labor $150,000
Machine depreciation 85,000
Maintenance and supplies 60,000
Total conversion costs $295,000
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.
+2
Answers (2)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Kilbuck Company operates in a lean manufacturing environment. Kilbuck applies conversion costs at a rate of $25 per unit. Kilbuck produced ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Home » Business » 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.