Question

Recording manufacturing costs in a JIT costing system

Gateway 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:

Requirements

  1. Prepare summary journal entries for August using JIT costing, including the entry to adjust the Conversion Costs account.
  2. 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 incurred
Number of calculators produced
Number of calculators sold (on account, at $105 each)
$ 8,300
20,500
300 calculators
295 calculators

Image Transcription

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

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Journal and Ledger Balance

Accounting For Decision Making

Other

Final Accounts

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: A Preparing a financial budget—schedule of cash receipts, schedule of cash payments, cash budget Puc...

A: Click to see the answer

Q: What is required in an examination of Internal Control under Sarbanes-Oxley?

A: As per Sarbanes Oxley Act,all publicly traded companies need to establish the internal controls for ...

Q: he financial year for Drip Dry Cleaning Services ends on 30 June. Using the following information,ma...

A: The Adjusting entries need to be passed at the end of the financial year so that the books are adjus...

Q: Classique Household Furnishings & Appliances is a family-owned furniture store. You are the mana...

A: As you posted multiple sub parts in questions we are answering only first 3 sub parts only. Kindly r...

Q: What is the role of a Database Administrator?

A: Database:  A database can be defined as a collection of structured data which is stored in digital f...

Q: Preparing variable and absorption costing income statements Game Source manufactures video games tha...

A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer...

Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earnedOperating ...

A: Click to see the answer

Q: Preparing a financial budget—schedule of cash payments Barnes Company budgeted direct materials purc...

A: Definition:   Schedule of cash payment: A schedule of cash payment shows the firm’s expected payment...

Q: What is the formula used to determine the amount of direct materials to be purchased?

A: Direct Materials:   They are the materials and supplied that are directly consumed for the manufactu...