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

question 54

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.Which of the following would NOT be an entry under the back flush system,assuming the second trigger point is the completion of goods?

• A)\(\begin{array}{ll}
• \text { Materials and In Process Inventory } & 40,000 \\
• \quad \text { Accounts Payable } & 40,000
• \end{array}\)
• B)\(\begin{array}{ll}
• \text { Work-in-Process Inventory } & 40,000 \\
• \text { Materials Inventory } && 40,000
• \end{array}\)
• C)\(\begin{array}{lr}
• \text { Conversion Cost Control } & 46,000 \\
• \text { Wages Payable } && 6,000 \\
• \text { Accounts Payable } && 40,000
• \end{array}\)
• D)\(\begin{array}{ll}
• \text { Cost of Goods Sold } & 82,000 \\
• \quad \text { Finished Goods Inventory } & &82,000
• \end{array}\)

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