Question:
Recording JIT costing journal entries
Quality Products uses a JIT system to manufacture trading pins for the Hard Rock Café. The standard cost per pin is $2 for raw materials and $3 for conversion costs. Last month Quality recorded the following data:
|
Number of pins completed
|
4,000 pins
|
Raw material purchases
|
$ 9,500
|
|
Number of pins sold
|
3,300 pins
|
Conversion costs
|
$ 14,000
|
Requirement
1. Use JIT costing to prepare journal entries for the month, including the entry to close the Conversion costs account.