Question

just requirements 2 & 3 please (:

X Requirements 1. What are the major features of a JIT production system such as that of Freeze Point? 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, 2018, balance of Raw and In-Process Inventory. Print Done

Answer 1

Part 2

Journal entries
Date	Account title	Debit	Credit
Mar 2018	Raw and In-Process Inventory	$            200,000
	Accounts Payable		$            200,000
	(To record purchase of raw materials.)
Mar 2018	Conversion Costs	$            441,000
	Wages Payable/Accumulated Depreciation/Cash		$            441,000
	(To record actual conversion costs incurred.)
Mar 2018	Finished Goods Inventory (14000*39)	$            546,000
	Conversion Costs (14000*24)		$            336,000
	Raw and In-Process Inventory (14000*15)		$            210,000
	(To record cost of completed production.)
Mar 2018	Accounts Receivable (13600*85)	$        1,156,000
	Sales revenue		$        1,156,000
	(To record sales on account.)
Mar 2018	Cost of Goods sold	$            530,400
	Finished Goods Inventory (13600*39)		$            530,400
	(To record Cost of Goods sold.)
Mar 2018	Cost of Goods sold	$            105,000
	Conversion Costs (441000-336000)		$            105,000
	(To record Underallocated conversion costs adjusted to Cost of Goods Sold.)

Part 3

Raw and In-Process Inventory
Transaction	Debit	Credit	Transaction
Beg. Bal	14,000
Raw material purchase	200,000	210,000	Direct Material used
End. Bal	$       4,000
Balance of Raw and In-Process Inventory			$    4,000