1.

Just-in-time means that raw materials are not received just in time to go into
production, manufactured parts are completed just in time to be assembled into
products, and products are completed just in time to be shipped to customer
Answer: Received
2. JIT manufacturing philosophy originated in Singapore (primarily by Toyota and
Kawasaki)
Answer: Japan
3. JIT costing is reffered to as traditional costing
Answer: Backflushing Costing
4. JIT manufacturing is characterized by desicions made by companies to intentionally
maintain relatively small inventory levels
Answer: True
5. JIT has 5 key elements involved in th operation of a JIT system
Answer: True
6. the purpose of backflush costing is to simplify and to reduce the number of events
that are measured and recorded in the accounting system.
Answer :true
7. Backflushing is a lengthy version of the traditional method of accouning of cost.
Answer:false (shortened)
8. Backflush costin eliminates some of the accounting steps under traditional costing
and some of the general ledger account are combined into one.
Answer:true
9.under job order costing and process costing the three elements of cost are direct
materials,direct goods, factory overhead.
Anwer:false (direct labor)
10.under backflushing and jit accounting the account rip is a combination of raw
materials and work properly
Answer: false (work in process)
Khaya MoPa Co. has the following transactions that occurred during May 2022. This
division uses JIT costing system.
1. Raw materials were purchased at the cost of P350,000
2. All the materials purchased were requisitioned for production.
3. Direct labor cost of 195,000 were incurred.
4. Actual factory overhead cost amounted to P255,000.
5. Applied conversion cost totaled P450,000. This includes P195,000 of direct
labor.
6. All units were completed and sold.
Required:
1. Journal Entries to record traditional costing system and general ledger (T-
accounts).
2. Journal Entries to record JIT costing system and general ledger (T-accounts).

Answers:
Traditional Costing System:
1. Materials 350,000
Accounts Payable 350,000

2. Work in Process 350,000

Materials 350,000

3. Work in Process 195,000

Accrued Payroll 195,000

4. Factory Overhead 255,000

Miscellaneous Account 255,000

5. Work in Process 255,000

Factory Overhead 255,000

6. Finished Goods 800,000

Work in Process 800,000
Cost of Goods Sold 800,000
Finished Goods 800,000
T- accounts
JIT Costing System:
1. Raw and In Process 350,000
Accounts Payable 350,000

3. Conversion Cost 195,000

Accrued Payroll 195,000

4. Conversion Cost 255,000

Miscellaneous Accounts 195,000

6. Cost of Goods Sold 800,000

Raw and In Process 350,000
Conversion Cost 450,000

T-Accounts