MaximumTec Has Implemented JIT Had the Following Transactions

MaximumTec has implemented JIT had the following transactions:
1. Materials were purchased on account for $70,000.
2. Materials were placed into production.
3. Actual direct labor costs were $14,000.
4. Actual overhead costs were $50,000.
5. Conversion costs applied were $54,000.
6. All work was completed for the month.
7. All completed work was sold.
8. The variance is recognized.
Required:
a. Provide the journal entries for the above transactions assuming the traditional approach was used.
b. Provide the journal entries for a backflush system assuming the second trigger point is the point when goods are sold.

Correct Answer:

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Various accounts 54,000
Wages Payable 1...

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