Recording manufacturing costs in a JIT costing system Dubuc produces electronic calculators. Suppose Dubuc’s standard cost per calculator is $27 for materials and $63 for conversion costs. The following data apply to August production:
|
Materials purchased |
$6,700 |
|
|
Conversion costs incurred |
14,000 |
|
|
Number of calculators produced |
|
200 calculators |
|
Number of calculators sold |
|
195 calculators |
Requirements
1. Prepare summary journal entries for August using JIT costing, including the entry to close the Conversion costs account.
2. The beginning balance of Finished goods inventory was $1,700. Use a T account to find the ending balance of Finished goods inventory.