Beruflich Dokumente
Kultur Dokumente
Accounting
Chapter 5
Learning Objectives
Materials
Inventory Raw and In
Process
Work in Process
Inventory
Traditional Costing vs. JIT Costing
Direct
Materials
Factory
Overhead
JIT Accounting Cost Flow
Labor and
Overhead Costs
Labor and relating to unsold
Overhead Costs units
relating to
uncompleted units
To compare JIT costing with traditional costing, assume that TRAMS CO.
manufactures cellular telephones and uses a JIT production system. The ff.
transactions occurred during January.
a. Trams purchased ₱170,000 of raw materials
b. All materials purchased were requisitioned for production
c. Trams incurred direct labor costs of ₱80,000
d. Actual factory overhead costs amounted to ₱122,000
e. Trams applied conversion costs total of ₱202,000 (including direct labor
cost of ₱80,000)
f. All telephones were completed and sold.
Traditional Costing JIT Costing
2. Labor costs of ₱10,400 and overhead costs of ₱7,800 were incurred and applied, respectively, during the
month of January.