Question :
11) What five features of a just-in-time manufacturing system?
Objective : 1217090
11) What are five features of a just-in-time manufacturing system?
Objective 20.7
1) Traditional normal and standard costing systems use:
A) backflush costing
B) delayed costing
C) post-deduct costing
D) sequential tracking
2) A costing system that omits recording some or all of the journal entries relating to the cycle from purchase of direct materials to the sale of finished goods is called:
A) dependent costing
B) synchronous costing
C) sequential costing
D) backflush costing
Answer the following questions using the information below:
Games R Us manufactures various games. For March, there were no beginning inventories of direct materials and no beginning or ending work in process. Conversion costs is the only indirect manufacturing cost category currently used. Journal entries are recorded when materials are purchased and when conversion costs are allocated under backflush costing.
Conversion costs ? March$ 400,000
Direct materials purchased ? March$1,070,000
Units produced ? March58,800
Units sold ? March41,800
3) Which of the following journal entries properly records the purchase of direct materials?
A) Accounts Payable Control1,070,000
Inventory: Raw and In-Process Control1,070,000
B) Inventory: Raw and In-Process Control1,070,000
Accounts Payable Control1,070,000
C) Inventory: Raw and In-Process Control1,070,000
Conversion Costs1,070,000
D) Conversion Costs1,070,000
Inventory: Raw and In-Process Control1,070,000
4) Which of the journal entries properly records conversion costs?
A) Conversion Costs400,000
Various Accounts400,000
B) Various Accounts400,000
Conversion Costs400,000
C) Conversion Costs400,000
Inventory: Direct Materials400,000
D) Inventory: Direct Materials400,000
Conversion Costs400,000
5) Which of the following entries properly records the cost of goods sold for the month?
A) Finished Goods1,045,000
Work in Process1,045,000
B) Cost of Goods Sold1,045,000
Finished Goods1,045,000
C) Finished Goods1,045,000
Cost of Goods Sold1,045,000
D) Cost of Goods Sold1,045,000
Work in Process1,045,000
Answer the following questions using the information below:
Complete Digital Products manufactures digital cameras. For October, there were no beginning inventories of direct materials and no beginning or ending work in process. Conversion costs is the only indirect manufacturing cost category currently used. Journal entries are recorded when materials are purchased and when units are sold.
Conversion costs – October$ 45,200
Direct materials purchased – October$125,200
Units produced – October40,000 units
Units sold – October37,500 units
Selling price$10 each
6) Which of the following journal entries properly reflects the purchase of materials in a JIT environment?
A) Inventory: Raw and In-Process125,200
Accounts Payable Control125,200
B) Accounts Payable Control125,200
Allocated Costs: Direct Materials125,200
C) Accounts Payable Control125,200
Materials Inventory125,200
D) Allocated Costs: Direct Materials125,200
Inventory: Raw and Material125,200
7) Which of the following journal entries would be recorded when units are sold for the month?
A) Cost of Goods Sold159,750
Inventory: Raw and In-Process159,750
B) Cost of Goods Sold159,750
Inventory: Raw and In-Process117,375
Conversion Costs Allocated42,375
C) Inventory: Raw and In-Process117,375
Conversion Costs Allocated42,375
Cost of Goods Sold159,750
D) Cost of Goods Sold159,750
Inventory: Raw and In-Process114,750
Conversion Costs Allocated45,000
B) Direct materials ($125,200/40,000)$3.13
Conversion costs ($45,200/40,000)1.13
Total$4.26
37,500 × $4.26= $159,750
37,500× $3.13= $117,375
37,500 × $1.13= $42,375
8) Which of the following entries would occur if the only trigger point is the production of finished units?
A) Cost of Goods Sold159,750
Inventory: Raw and In-Process Control114,750
Conversion Costs Allocated45,000
B) Inventory: Raw and In-Process Control117,375
Conversion Costs Allocated42,375
Cost of Goods Sold159,750
C) Finished Goods170,400
Accounts Payable Control125,200
Conversion Costs Allocated45,200
D) Accounts Payable Control125,200
Conversion Costs Allocated45,200
Finished Goods170,400
