(L.OBJ. 3) Recording manufacturing costs in a JIT costing system [10—15 min] Smith prod...

(L.OBJ. 3) Recording manufacturing costs in a JIT costing system [10—15 min]

Smith produces electronic calculators. Suppose Smith’s standard cost per calculator is $26 for materials arid $65 for conversion costs. The following data apply to July production:

Requirements

1. Prepare summary journal entries For July using JIT costing, including the entry to close the Conversion costs account.

2. The beginning balance of Finished goods inventory was $1,400. Use a T-account to find the ending balance of Finished goods inventory.