P25-5A Rugged Ways produces backpacks. The company uses JIT costing for its JIT produc- tion system. Rugged Ways has two inventory accounts: Raw and In Process Inventory and Finished Goods Inventory. On October 1. 20X4, the account balances were Raw and In Process Inventory, $3,000; Finished Goods Inventory, $5,000. The standard cost of a backpack is $40-$10 direct materials plus $30 conversion costs. Data for October's activity follow. Number of backpacks completed. Number of backpacks sold 15,000 backpacks 14,800 backpacks Direct materials purchased.... Conversion costs incurred... $156,000 467,000 1053 Required 1. What are the major features of a JIT production system such as Rugged Ways? 2. Prepare summary journal entries for October. Under- or overallocated conversion costs are closed to Cost of Goods Sold monthly. 3. Use a T-account to determine the October 31, 20X4, balance of Raw and In Process Inventory,