Concept explainers
Low Range produces fleece jackets. The company uses JIT costing for its JIT production system.
Low Range has two inventory accounts: Raw and In-Process Inventory and Finished Goods Inventory. On March 1, 2018, the account balances were Raw and In-Process Inventory, $9,000; Finished Goods Inventory, $1,700.
The
Requirements
- 1. What are the major features of a JIT production system such as that of Low Range?
- 2. Prepare summary
journal entries for March. Underallocated or overallocated conversion costs are adjusted to Cost of Goods Sold monthly. - 3. Use a T-account to determine the March 31, 2018, balance of Raw and In-Process Inventory.
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