A Firm That Has Implemented JIT Had the Following Transactions

question 44

Multiple Choice

A firm that has implemented JIT had the following transactions:
1) Materials were purchased on account for $40,000.
2) Materials were placed into production.
3) Actual direct labor costs were $6,000.
4) Actual overhead costs were $40,000.
5) Conversion costs applied were $42,000.
6) All work was completed for the month.
7) All completed work was sold.
8) The variance is recognized.
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 40,000
• Accounts Payable 40,000
• B) Work-in-Process Inventory 40,000
• Materials Inventory 40,000
• C) Conversion Cost Control 46,000
• Wages Payable 6,000
• Accounts Payable 40,000
• D) Cost of Goods Sold 82,000
• Finished Goods Inventory 82,000

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Definitions:

Attentiveness

The quality of paying close attention to something or someone, being alert and focused.

Summarization

The act of condensing information into a compact, comprehensive format, highlighting key points and main ideas.

Highlighting

Emphasizing or making certain aspects or details more noticeable or important.

Incongruent Responses

Responses or reactions that do not match the situation or the emotional state expected, often indicating underlying issues.