The Lim Company has a plant that manufacturers transistor radios, The production time is only a...

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The Lim Company has a plant that manufacturers transistor radios, The production time is only a few minutes per unit. The company uses a just-in- time production system and a backflush costing system with two trigger points for journal entries: Purchase of direct (raw) materials Completion of good finished units of product There are no beginning inventories. The following data pertain to April manufacturing: P8,800,000 8,500,000 Direct (raw) materials purchased Direct (raw) materials used Conversion costs incurred Allocation of conversion costs Costs transferred to finished goods Cost of goods sold 4,220,000 4,000,000 12,500,000 11,900,000 Required: 1. Prepare summary journal entries for April (without disposing of under- or overallocated conversion costs). Assume no direct materials variances. 2. Post the entries in requirement 1 to T-accounts for applicable Inventory Control, Conversion Costs Control, Conversion Costs Allocated and Cost of Goods Sold. 3. Under an ideal JIT production system, how would the amounts in your journal entries differ from those in requirement 1? The Lim Company has a plant that manufacturers transistor radios, The production time is only a few minutes per unit. The company uses a just-in- time production system and a backflush costing system with two trigger points for journal entries: Purchase of direct (raw) materials Completion of good finished units of product There are no beginning inventories. The following data pertain to April manufacturing: P8,800,000 8,500,000 Direct (raw) materials purchased Direct (raw) materials used Conversion costs incurred Allocation of conversion costs Costs transferred to finished goods Cost of goods sold 4,220,000 4,000,000 12,500,000 11,900,000 Required: 1. Prepare summary journal entries for April (without disposing of under- or overallocated conversion costs). Assume no direct materials variances. 2. Post the entries in requirement 1 to T-accounts for applicable Inventory Control, Conversion Costs Control, Conversion Costs Allocated and Cost of Goods Sold. 3. Under an ideal JIT production system, how would the amounts in your journal entries differ from those in requirement 1?

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Step 1 Lim company uses Just in Time production line method and backflush costing The given data for ... View the full answer