Assignment:
Q: High Range produces fleece jackets. The company uses JIT costing for its JIT production system. High RangeHigh Range has two inventory? accounts: Raw and? In-Process Inventory and Finished Goods Inventory. On February? 1, 2016?, the account balances were Raw and? In-Process Inventory, $12,000?; Finished Goods? Inventory, $1,600. The standard cost of a jacket is $32?, composed of $ 11 direct materials plus $ 21 conversion costs. Data for? February's activities?
Requirements
1. What are the major features of a JIT production system such as that of High RangeHigh Range?
2. Prepare summary journal entries for February. Underallocated or overallocated conversion costs are adjusted to Cost of Goods Sold monthly.
3. Use a? T-account to determine the February? 29, 2016?, balance of Raw and? In-Process Inventory
Home Insert Page Layout Formulas Data Review cut A A Calibri Copy E E Format Painter B U A ste 4 Font Clipboard fe Number of jackets completed Al Number of jackets completed 20,000 Number of jackets sold (on account, for $45 each) 19,600 Direct materials purchased (on account) $215,000 Conversion costs incurred $521,000