Just-In-Time Methods

question 98

Essay

Just-in-time methods.Carmen Products uses just-in-time production methods.To produce 1,200 units for an order,the company purchased and used materials costing $36,000 and incurred other manufacturing costs of $24,000,of which $10,000 was labor.All costs were on account.After Carmen completed production on the 1,200 units and shipped 1,100 units,management recorded the Finished Goods Inventory balance for the 100 units remaining in inventory for financial statement preparation.
Required: Prepare journal entries and T-accounts for these transactions using backflush costing.

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Definitions:

Text Box

A graphical user interface element where users can input text data.

Emphasize

To give particular importance or prominence to something within a piece of text or a speech.

Mute

To turn off the sound temporarily on a device or in an application.

Gray Tones

Variations of gray color, used in design, photography, and printing to produce shading and depth.