A Firm That Has Implemented JIT Had the Following Transactions

question 45

Essay

A firm that has implemented JIT had the following transactions:
1. Materials were purchased on account for $50,000.
2. Materials were placed into production.
3. Actual direct labor costs were $10,000.
4. Actual overhead costs were $40,000.
5. Conversion costs applied were $34,000.
6. All work was completed for the month.
7. All completed work was sold.
8. The variance is recognized.
Required:
a. Provide the journal entries for the above transactions assuming the traditional approach was used.
b. Provide the journal entries for a backflush system assuming the second trigger point is the point when goods are completed.

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Definitions:

Right to Vote

A civil right that allows individuals of a democratic society to participate in the election of government officials and in referendum questions, fundamental to the democratic process.

Civilian Population

Non-military individuals and communities who are generally considered to be outside of the combatant categories during times of war or conflict.

General Sherman

refers to William Tecumseh Sherman, a Union general during the American Civil War, known for his "March to the Sea" campaign, which aimed to demoralize the South.