Deep Freeze produces fleece jackets. The company uses JIT costing for its JIT production system. Deep...

Transcribed Image Text:

Deep Freeze produces fleece jackets. The company uses JIT costing for its JIT production system. Deep Freeze has two inventory accounts: Raw and In-Process Inventory and Finished Goods Inventory. On March 1, the account balances were Raw and In-Process Inventory, $13,000; Finished Goods Inventory, $1,900. The standard cost of a jacket is $34, composed of $11 direct materials plus $23 conversion costs. Data for March's activities follow: (Click the icon to view the data.) Read the requirements. Requirements - X Data table 1. What are the major features of a JIT production system such as that of Deep Freeze? 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, 2024, balance of Raw and In-Process Inventory. Number of jackets completed 14,000 Number of jackets sold (on account, for $100 each) Direct materials purchased (on account) 13,600 $ 144,000 $ 422,000 Conversion costs incurred Print Done Print Done - X Deep Freeze produces fleece jackets. The company uses JIT costing for its JIT production system. Deep Freeze has two inventory accounts: Raw and In-Process Inventory and Finished Goods Inventory. On March 1, the account balances were Raw and In-Process Inventory, $13,000; Finished Goods Inventory, $1,900. The standard cost of a jacket is $34, composed of $11 direct materials plus $23 conversion costs. Data for March's activities follow: (Click the icon to view the data.) Read the requirements. Requirements - X Data table 1. What are the major features of a JIT production system such as that of Deep Freeze? 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, 2024, balance of Raw and In-Process Inventory. Number of jackets completed 14,000 Number of jackets sold (on account, for $100 each) Direct materials purchased (on account) 13,600 $ 144,000 $ 422,000 Conversion costs incurred Print Done Print Done - X