The Following Transactions Take Place After the Implementation of JIT

question 3

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.
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 75,000
• Accounts Payable 75,000
• B) Work-in-Process Inventory 75,000
• Materials Inventory 75,000
• C) Conversion Cost Control 46,000
• Wages Payable 16,000
• Accounts Payable 30,000
• D) Cost of Goods Sold 102,000
• Finished Goods Inventory 102,000

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Definitions:

Competitive Force

Refers to the pressure exerted by competitors within the same industry, impacting an organization's strategies and performance.