High Range produces fleece jackets. The company uses JIT costing for its JIT production system.

High Range has two inventory accounts: Raw and In-Process Inventory and Finished Goods Inventory. On February 1, 2009, the account balances were Raw and In-Process Inventory, \$6,000; Finished Goods Inventory; \(\$ 1,000\).

The standard cost of a jacket is \(\$ 40-\$ 15\) direct materials plus \(\$ 25\) conversion costs. Data for February's activity follow:

Requirements 

1. What are the major features of a JIT production system such as that of High Range?

2. Prepare summary journal entries for February. Under- or overallocated conversion costs are closed to Cost of Goods Sold monthly.

3. Use a T-account to determine the February 28,2009 , balance of Raw and In-Process Inventory. 

Transcribed Image Text:

Number of jackets completed Number of jackets sold 18,000 17,600 Direct materials purchased $265,000 Conversion costs incurred 551,000