Reference no: EM132796764

The lim company has a plant that manufacturers transistor radios. the production time is only a few minutes per unit. the company uses just in time production system and a backflush costing sytem with two trigger points for journal entries:

purchases of direct (raw) materials
completion of goods finished units of product

There are no beginning inventories the following data pertain to April manufacturing:

Direct material purchased 8.800

direct materials used 8,500

conversion cost incurred 4.220

Allocation of conversion costs 4,000

costs transferred to finished goods 12,500

Cost of goods sold 11,900

Required:

Problem 1: prepare summary journal entries for april (without disposing of under over allocated conversion costs.) Assume no direct materials variances.

Problem 2: Post the entries in requirement 1 to T-accounts for applicable inventory control, conversion costs control, conversion costs allocated and cost of goods sold.

Problem 3: Under an ideal JIT production sytsem how would the amounts in your journal entries differ from those in requirement 1