Murdock and Associates manu- factures automated materials-handling systems. The company currently uses a con- ventional job costing system. During November, the company plans to purchase $96,000 of raw materials. Of this amount, 75 percent will be used for current production, while the remainder will serve as a buffer in inventory. Direct labor cost is expected to be $18,000 during November, and the actual factory overhead is anticipated to total $85,000. The applied factory overhead is expected to be $90,000. By the end of the month, two materials-handling systems should be completed; no systems were in process at the beginning of the month. Rick Murdock, the owner, has been considering the use of a JIT inventory system. If implemented at the beginning of November, only the materials needed for current production would be purchased.

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Required: 1. Using T-accounts, enter the November transactions for the purchase and usage of materials under: (a) Conventional costing. (b) JIT costing. 2. Using T-accounts, enter the November transactions for the labor and actual overhead costs under: (a) Conventional costing. (b) JIT costing. 3. Using T-accounts, enter the November transactions for the application of over- head costs and the completion of the materials-handling systems under: (a) Conventional costing. (b) JIT costing.