GIT journal entries. Tanawak Industries recorded the following transactions for its first month of operations.

Because Tanawak Industries employs JIT, the company’s CEO has asked how the accounting system could be simplified.

a. Prepare the journal entries, assuming that no transactions are recognized until goods are completed.

b. Prepare the journal entries, assuming that goods are shipped to cus¬ tomers as soon as they are completed and that no journal entries are recorded until goods are completed.

c. Prepare the journal entries, assuming that sale of product is the trigger point for journal entries.

d. Prepare the journal entries, assuming that sale of product is the trigger point for journal entries and that the firm uses backflush costing.

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(1) Direct Material Inventory Accounts Payable To record purchase of direct material. 12,000 12,000 (2) Work in Process Inventory 12,000 Direct Material Inventory 12,000 To record distribution of material to production. (3) Conversion Costs 20,000 Various accounts 20,000 To record incurrence of conversion costs. (4) Work in Process Inventory 20,000 Conversion Costs 20,000 To assign conversion cost to WIP. (5) Finished Goods Inventory Work in Process Inventory 32,000 32,000 To record completion of products. (6) Accounts Receivable 58,000 Sales 58,000 To record sale of products. Cost of Goods Sold 31,000 Finished Goods Inventory 31,000 To record cost of goods sold.