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JIT journal entries Cosmo Industries recorded the following transactions for its first month of operations: ( 1 ) Direct Material Inventory. Accounts Payable. . .
JIT journal entries Cosmo Industries recorded the following transactions for its first month of operations:
Direct Material Inventory.
Accounts Payable.
To record purchase of direct material
Work in Process Inventory
Direct Material Inventory.
To record distribution of material to production
Conversion Cost Control Various accounts cdots
To record incurrence of con Work in Process Inventory
Work in Process Inventory Conversion Cost Control To assign conversion cost to WIP
Work in Process Inventory
To record completion of products
Accounts Receivable Sales.
Finished G Work To record Accounts Sales
To record sale of products
Cost of Goods Sold
Finished Goods Inventory.
To record cost of goods sold
Because Cosmo employs JIT, the company's CEO has asked how the accounting system could be simplified.
a Prepare the journal entries, assuming that no transactions are recognized until goods are completed.
b Prepare the journal entries, assuming that goods are shipped to customers as soon as they ar completed and that no journal entries are recorded until goods are completed.
c Prepare the journal entries, assuming that sale of product is the trigger point for journal entries
d Prepare the journal entries, assuming that sale of product is the trigger point for journal entrie and that the firm uses backflush costing.
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