Gateway produces electronic calculators. Suppose Gateway’s standard cost per calculator is $25 for direct materials and $68 for conversion costs. The following data apply to August activities:

Direct materials purchased (on account) ..........................$ 8,300 

Conversion costs incurred .................................................... 20,500 

Number of calculators produced ..............................................300 calculators 

Number of calculators sold (on account, at $105 each) .........295 calculators  

Requirements 

1. Prepare summary journal entries for August using JIT costing, including the entry to adjust the Conversion Costs account. 

2. The beginning balance of Finished Goods Inventory was $1,300. Use a T-account to find the ending balance of Finished Goods Inventory.