Perfecto Products uses a JIT management system to manufacture trading pins. The standard cost per pin is $1 for direct materials and $2 for conversion costs. Last month, Perfecto recorded the following data:
Number of pins completed .......... 3,800 pins
Number of pins sold (on account at $6 each) ..... 3,400 pins
Raw material purchases (on account) ....... $8,000
Conversion costs .............. $14,500
Use JIT costing to prepare journal entries for the month, including the entry to adjust the Conversion Costs account.