Smith produces electronic calculators. Suppose Smith’s standard cost per calculator is \($26\) for materials and \($65\) for conversion costs. The following data apply to July production:

Requirements 

1. Prepare summary journal entries for July using JIT costing, including the entry to close the Conversion costs account.

2. The beginning balance of Finished goods inventory was \($1,400\). Use a T-account to find the ending balance of Finished goods inventory.

Transcribed Image Text:

Materials purchased Conversion costs incurred Number of calculators produced Number of calculators sold $ 7,200 18,500 2.50 calculators 245 calculators