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:

International Marketing

The practice of promoting and selling products or services across national borders.

Intermediate Goal

A checkpoint or milestone that is set between the immediate start of a project and the long-term end goal, helping to organize and measure progress.

Technical Skills

Abilities and knowledge needed to perform specific tasks related to technology, engineering, or other specialized fields.

Communication Skills

The ability to convey or exchange information effectively through various means, including speaking, writing, and nonverbal expressions.