Question

PerfectoPerfecto

Products uses a JIT management system to manufacture trading pins. The standard cost per pin is

$ 1$1

for direct materials and

$ 3$3

for conversion costs. Last​ month,

PerfectoPerfecto

recorded the following​ data:

Number of pins completed	4,100	pins
Number of pins sold (on account at $10 each)	3,400	pins
Raw material purchases (on account)	$7,500
Conversion costs	$30,000

Use JIT costing to prepare journal entries for the​ month, including the entry to adjust the Conversion Costs account. ​(Record debits​ first, then credits. Exclude explanations from journal​ entries.)

Answer 1

17 18 19 20 21 Account Title & Explanation Debit Credit Raw and In Process Inventory 7500 Accounts Payable Conversion costs Wages Payable ,Accumulated Dep. etc. 23 Finished Goods Inventory 37500 Raw and In Process Inventory 25 26 27 28 29 30 31 32 Conversion costs Accounts Receivable Sales Revenue (3400*10) Cost of Goods Sold 31098 Finished Goods Inventory 31098 Actual overheads 30,000 12,300 4100*3 17,700 Cost of Goods Sold 17,700 34 35 36 37 Conversion costs 17,700 Applied Overheads Underapplied Overheads