A Firm That Has Implemented JIT Had the Following Transactions $\begin{array}{llr} \text { Materials and In Process Inventory } &40,000\\ \text { Accounts Pavable } &&40,000\\\end{array}$

question 55

Multiple Choice

A firm that has implemented JIT had the following transactions:
1. Materals were purchased an account for $40,000
2. Materials were placed inta production.
3. Actual direct labour costs were $6,000.
4. Actual averhead costs were $40,000.
5. Conversion costs applied were $42,000.
6. All work was completed for the month.
7. All completed work was sald.
8. The variance is recoprized.
-Refer to the figure.What will be the entry to record material purchases using the traditional approach?

• A)\(\begin{array}{llr}
• \text { Materials and In Process Inventory } &40,000\\
• \text { Accounts Pavable } &&40,000\\
• \end{array}\)
• B)\(\begin{array}{llr}
• \text { Materials Inventory } &40,000\\
• \text { Accounts Payable } &&40,000\\
• \end{array}\)
• C)\(\begin{array}{llr}
• \text { Accounts Payable } &40,000\\
• \text { Materials and In Process Inventory } &&40,000\\
• \end{array}\)
• D)\(\begin{array}{llr}
• \text { Accounts Payable } &40,000\\
• \text { Materials Inventory} &&40,000\\
• \end{array}\)

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Definitions:

Structured Interview

An interview method where each interviewee is asked a uniform set of questions to ensure consistency in how the responses are evaluated.

Behavior-Based

Refers to approaches or interventions grounded in the observation and modification of behavior as the primary method of treating psychological conditions or organizational problems.

Affiliative Leadership

A leadership style focused on creating harmony and building emotional bonds within a team or organization.