Cosmo Industries recorded the following transactions for its first month of operations:

Because Cosmo employs JIT, the company's CEO has asked how the accounting system could be simplified.
a. Prepare the journal entries, assuming that no transactions are recognized until goods are completed.
b. Prepare the journal entries, assuming that goods are shipped to customers as soon as they are completed and that no journal entries are recorded until goods are completed.
c. Prepare the journal entries, assuming that sale of product is the trigger point for journal entries.
d. Prepare the journal entries, assuming that sale of product is the trigger point for journal entries and that the firm uses backflushcosting.

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(1) Direct Material Inventory 24,000 Accounts Payable 24,000 To record purchase of direct material (2) Work in Process Inventory 24,000 Direct Material Inventory To record distribution of material toproduction 24,000 (3) Conversion Cost Control 40,000 Various accounts 40,000 To record incurrence of conversion costs (4) Work in Process Inventory 40,000 Conversion Cost Control To assign conversion cost to WIP 40,000 (5) Finished Goods Inventory 64,000 Work in Process Inventory To record completion of products 64,000 (6) Accounts Receivable 116,000 Sales 116,000 To record sale of products Cost of Goods Sold 62,000 Finished Goods Inventory To record cost of goods sold 62,000