Recording manufacturing costs in a JIT costing systemGateway produces electronic calculators. Suppose Gateway’s Standard cost per calculator is $25 for direct materials and $68 for conversion costs. The following data apply to August activities:RequirementsPrepare summary journal entries for August using JIT costing, including the entry to adjust the Conversion Costs account.The beginning balance of Finished Goods Inventory was $1,300. Use a T-account to find the ending balance of Finished Goods Inventory. Direct materials purchased (on account)Conversion costs incurredNumber of calculators producedNumber of calculators sold (on account, at $105 each)$ 8,30020,500300 calculators295 calculators

Name: Recording manufacturing costs in a JIT costing systemGateway produces
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Description: Recording manufacturing costs in a JIT costing systemGateway produces electronic calculators. Suppose Gateway’s Standard cost per calculator is $25 for direct materials and $68 for conversion costs. The following data apply to August activities:Requi

Workings: Sales Revenue = 295 x 105 = 30975 Raw and in process inventory = 300 x 25 = 7500…

Answered: Direct materials purchased (on account)…

Business

Accounting

Direct materials purchased (on account) Conversion costs incurred Number of calculators produced Number of calculators sold (on account, at $105 each) $ 8,300 20,500 300 calculators 295 calculators

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8EB: A production department within a company received materials of $7,000 and conversion costs of $5,000...

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