The lim company has a plant that manufacturers transistor radios. the production time is only a few
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Question:
The lim company has a plant that manufacturers transistor radios. the production time is only a few minutes per unit. the company uses just in time production system and a backflush costing system with two trigger points for
journal entries:
- purchases of direct (raw) materials
- completion of goods finished units of product
There are no beginning inventories the following data pertain to April manufacturing:
Direct material purchased 8.800
direct materials used 8,500
conversion cost incurred 4.220
Allocation of conversion costs 4,000
costs transferred to finished goods 12,500
Cost of goods sold 11,900
Required:
- Prepare summary journal entries for april (without disposing of under over allocated conversion costs.) Assume no direct materials variances.
- Post the entries in requirement 1 to T-accounts for applicable inventory control, conversion costs control, conversion costs allocated and cost of goods sold.
- Under an ideal JIT production system how would the amounts in your journal entries differ from those in requirement 1
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