Hagerty, Inc., a manufacturer of computer diskettes, currently uses a conventional process costing system. Dur- ing February, Hagerty plans to purchase $40,000 of raw materials. Of this amount, 80 percent will be used for current production, while the remainder will serve as a buffer in inventory. Direct labor cost is expected to be $10,000 during February, and the actual factory overhead is anticipated to total $65,000. Jim Kinard, the owner, has been considering the use of a JIT inventory system. If implemented at the beginning of February, only the materials needed for current production would be purchased. 

Required: 

1. Using T-accounts, enter the February transactions for the purchase and usage of materials under:

(a) Conventional costing. 

(b) JIT costing. 

2. Using T-accounts, enter the February transactions for the labor and overhead costs under: 

(a) Conventional costing. 

(b) JIT costing. Do not record the entry for applied overhead.