The Following Transactions Take Place After the Implementation of JIT

question 50

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 material placed into production using the traditional 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-n-Process Inventory 75,000
• Materials and In Process Inventory 75,000
• D) Work-in-Process Inventory 75,000
• Materials Inventory 75,000

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Definitions:

Closely Held

A description for a corporation or company that has a small number of shareholders, often characterized by its shares not being widely available to the public.

Fiduciary Duty

A legal obligation requiring one party to act solely in another party's interest with a high standard of care, especially in matters concerning trust and confidence.

Office Equipment

Items and machinery used in an office to assist in tasks and operations, such as computers, printers, and furniture.

Profit Made

The revenue remaining after all expenses have been deducted from total sales.