Low Range produces fleece jackets. The company uses JIT costing for its JIT production system. Low Range has two inventory accounts: Raw and In-Process Inventory and Finished Goods Inventory. On March 1, 2018, the account balances were Raw and InProcess Inventory, $9,000; Finished Goods Inventory, $1,700. The standard cost of a jacket is $40, composed of $12 direct materials plus $28 conversion costs. Data for March’s activities follow:

Number of jackets completed ...........................................15,000 

Number of jackets sold (on account, for $50 each) ........14,600 

Direct materials purchased (on account) ......................$ 177,500 

Conversion costs incurred ...............................................$ 521,000  

Requirements 

1. What are the major features of a JIT production system such as that of Low Range? 

2. Prepare summary journal entries for March. Underallocated or overallocated conversion costs are adjusted to Cost of Goods Sold monthly. 

3. Use a T-account to determine the March 31, 2018, balance of Raw and In-Process Inventory.