A Firm That Has Implemented JIT Had the Following Transactions $\$ 50,000$

question 42

Essay

A firm that has implemented JIT had the following transactions: 1. Materials were purchased on account for $\$ 50,000$ .
2. Materials were placed into production.
3. Actual direct labour costs were $\$ 10,000$ .
4. Actual overhead costs were $\$ 40,000$ .
5. Conversion costs applied were $\$ 34,000$ .
6. All work was completed for the month.
7. All completed work was sold.
8. The variance is recognized.
A)Provide the journal entries for the above transactions assuming the traditional approach was used.
B)Provide the journal entries for a back flush system assuming the second trigger point is the point when goods are completed.

• A)Provide the journal entries for the above transactions assuming the traditional approach was used.
• B)Provide the journal entries for a back flush system assuming the second trigger point is the point when goods are completed.