Chapter 19 of Horngren's managerial accounting.

Learning Objective 5 E19-29 Recording manufacturing costs in a JIT costing system Gateway produces electronic calculators. Suppose Gateway's standard cost per calcula- 1. R&IP $7,500 CR tor is $25 for direct materials and $68 for conversion costs. The following data apply to August activities: Direct materials purchased (on account) $ 8,300 CHAPTER 19 Conversion costs incurred 20,500 Number of calculators produced 300 calculators Number of calculators sold (on account, at $105 each) 295 calculators Requirements 1. Prepare summary journal entries for August using JIT costing, including the entry to adjust the Conversion Costs account. 2. The beginning balance of Finished Goods Inventory was $1,300. Use a T-account to find the ending balance of Finished Goods Inventory