The following transactions take place after the implementation of JIT: 1. Materials were purchased on account...
The following transactions take place after the implementation of JIT:
| 1. | Materials were purchased on account for $75,000. |
| 2. | Materials were placed into production. |
| 3. | Actual direct labor costs were $16,000. |
| 4. | Actual overhead costs were $30,000. |
| 5. | Conversion costs applied were $52,000. |
| 6. | All work was completed for the month. |
| 7. | All completed work was sold. |
| 8. | The variance is recognized. |
What will be the entry to record material placed into production
using the traditional approach?
a.
Work-in-Process Inventory75,000
Materials Inventory75,000
b.
Materials and In Process Inventory75,000
Work-in-process Inventory75,000
c.
Work-in-Process Inventory75,000
Materials and In Process Inventory75,000
d.
Materials Inventory75,000
Accounts Payable75,000
Homework Answers
Answer -A.
Work-in-Process Inventory 75,000
Materials Inventory 75,000
Material inventory will reduced by crediting and work in process Inventory will be added by debting the same
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