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:

Transfer The Title

The process of legally changing ownership of a property or asset from one party to another.

Title Deed

A legal document or certificate proving ownership of a property or piece of land.

Contract Enforceable

A legally binding agreement that can be upheld in court.

Loan With The Bank

An agreement where a bank lends money to a borrower, who agrees to repay it along with interest over a specified period.