P25-5B Connection produces cellular phones. The company has a JIT production system and uses JIT costing. Connection has two inventory accounts, Raw and In Process Inventory and Finished Goods Inventory. On August 1, 20X5. the account balances were Raw and In Process Inventory, $1,500: Finished Goods Inventory. $2,500. Connection's standard cost per phone is $45: $30 direct materials plus $15 conversion costs. The following data pertain to August manufacturing and sales: Number of phones completed........... 10,000 phones Number of phones sold Raw material purchased........ $301,000 Conversion costs incurred $139.000 9.600 phones Required 1. What are the major features of a JIT production system such as Connection's? 2. Prepare summary journal entries for August. Under- and overallocated conversion costs are closed to Cost of Goods Sold at the end of each month. 3. Use a T-account to determine the August 31, 20X5, balance of Raw and In Process Inventory.