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Question - Kod Company uses a just-in-time system. To produce 20,000 units for an order, it purchased and used materials cost P250,000 and incurred other manufacturing costs of P150,000 of which P50,000 was labor. All costs were on account.
After book completed production of the 20.000 units and shipped 16,000 units, management needed the finished goods inventory balance for the 4,000 units remaining in inventory for financial statement preparation. The firm incurred costs even across all products.
Required - Journal entries to show the costs flow under JIT (Just in time) system.
Financial Statement Analysis and Preparation
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