High Range

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

High RangeHigh Range

has two inventory accounts: Raw and In-Process Inventory and Finished Goods Inventory. On February 1,

20162016,

the account balances were Raw and In-Process Inventory,

$ 12 comma 000$12,000;

Finished Goods Inventory,

$ 1 comma 600$1,600.

The standard cost of a jacket is

$ 32$32,

composed of

$ 11$11

direct materials plus

$ 21$21

conversion costs. Data for February's activities follow:

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Requirements

1.	What are the major features of a JIT production system such as that of High RangeHigh Range?
2.	Prepare summary journal entries for February. Underallocated or overallocated conversion costs are adjusted to Cost of Goods Sold monthly.
3.	Use a T-account to determine the February 29, 20162016, balance of Raw and In-Process Inventory