Recording JIT costing journal entries Quality Products uses a JIT system to manufacture trading pins for the Hard Rock Café. The standard cost per pin is $2 for raw materials and $3 for conversion costs. Last month Quality recorded the following data:
|
Number of pins completed |
4,000 pins |
Raw material purchases |
$ 9,500 |
|
Number of pins sold |
3,300 pins |
Conversion costs |
$ 14,000 |
Requirement
1. Use JIT costing to prepare journal entries for the month, including the entry to close the Conversion costs account.