A firm that has implemented JIT had the following transactions: What will be the entry to record material placed into production using the traditional approach?

Question

A firm that has implemented JIT had the following transactions:  What will be the entry to record material placed into production using the traditional approach?

Quizplus · Accepted Answer

Under the traditional approach, materials are first recorded in the Materials Inventory account. When they are placed into production, they are transferred to the Work-in-Process Inventory account. Therefore, the correct entry to record material placed into production using the traditional approach is:
Work-in-Process Inventory 40,000
Materials Inventory 40,000

A Firm That Has Implemented JIT Had the Following Transactions