Question:
Recording manufacturing costs in a JIT costing system Dubuc produces electronic calculators. Suppose Dubuc's standard cost per calculator is $27 for materials and $63 for conversion costs. The following data apply to August production:
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Materials purchased
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$6,700
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Conversion costs incurred
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14,000
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Number of calculators produced
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200 calculators
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Number of calculators sold
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195 calculators
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Requirements
1. Prepare summary journal entries for August using JIT costing, including the entry to close the Conversion costs account.
2. The beginning balance of Finished goods inventory was $1,700. Use a T-account to find the ending balance of Finished goods inventory.