the standard cost per pin is 2 for raw materials and 3 for conversion costs 556821

Recording JIT costing journal entries

Quality Products uses a JIT system to manufacture trading pins for the Hard Rock Café. The standard cost per pin is $2 for raw materials and $3 for conversion costs. Last month Quality recorded the following data:

Number of pins completed

4,000 pins

Raw material purchases

$ 9,500

Number of pins sold

3,300 pins

Conversion costs

$ 14,000

Requirement

1. Use JIT costing to prepare journal entries for the month, including the entry to close the Conversion costs account.

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