E18-22 Recording manufacturing costs in a JIT costing system [10–15 min]
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
Materials purchased $ 6,700
Conversion costs incurred 14,000
Number of calculators produced 200 Calculators
Number of Calculators sold 195 calculators
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
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