The Following Transactions Take Place After the Implementation of JIT

question 141

Multiple Choice

The following transactions take place after the implementation of JIT:
1) Materials were purchased on account for $75,000.
2) Materials were placed into production.
3) Actual direct labor costs were $16,000.
4) Actual overhead costs were $30,000.
5) Conversion costs applied were $52,000.
6) All work was completed for the month.
7) All completed work was sold.
8) The variance is recognized.
What will be the entry to record materials placed into production using the backflush approach?

• A) Materials and in Process Inventory 75,000
• Work-in-Process Inventory 75,000
• B) Materials Inventory 75,000
• Accounts Payable 75,000
• C) Work-in-Process Inventory 75,000
• Materials and in Process Inventory 75,000
• D) No entry is required

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Definitions:

Desertification

The process by which fertile land becomes desert typically as a result of drought, deforestation, or inappropriate agriculture.

Road Construction

The process of building or maintaining roads including the design, grading, paving, and lighting.

Vegetation

Plants in general, or a plant community of a specific area, which cover the ground and contribute to the local ecosystem.

Species Extinct

A condition in which no individuals of a species are left alive, leading to the permanent loss of that species from biodiversity.