Quality Products uses a JIT management system to manufacture trading pins. The standard cost per pin is $ 2 for direct materials and $ 3 for conversion costs. Last month, Quality recorded the following data:
Number of pins completed ............ 4,000 pins
Number of pins sold (on account at $ 8 each) .... 3,300 pins
Raw material purchases (on account) ....... $ 9,500
Conversion costs ...............$ 14,000
Use JIT costing to prepare journal entries for the month, including the entry to ­adjust the Conversion Costs account.