The Following Transactions Take Place After the Implementation of JIT

question 77

Multiple Choice

The following transactions take place after the implementation of JIT: Which of the following would NOT be an entry under the backflush system, assuming the second trigger point is the completion of goods?

• A) Materials and In Process Inventory 75,000 Accounts Payable 75,000
• B) Work-in-Process Inventory 75,000 Materials Inventory 75,000
• C) Conversion Cost Control 46,000 Wages Payable 16,000 Accounts Payable 30,000
• D) Cost of Goods Sold 102,000 Finished Goods Inventory 102,000

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Definitions:

Perpetual Inventory System

A method of inventory management where adjustments to inventory accounts are made continuously as transactions occur.

Cost Of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold by a company.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, becoming the next period's beginning inventory.

Periodic Inventory System

An inventory accounting system where updates to inventory levels are made at specific intervals, such as monthly or annually, rather than continuously.