Accounting for JIT
Vail operates a JIT plant assembling ceiling fans.The Sunset Model ceiling fam has a standard material cost of $28.40,a standard direct labor cost of $14.80,and overhead (fixed and variable)of $16.10.On Monday,a batch of 100 Sunset fans is completed.All of the materials for the 100 fans were on hand prior to Monday and had been previously recorded in the raw and in-process inventory account.
Required:
In analyzing the financial statements of a firm using JIT and another firm in the same industry not using JIT,what differences would you expect to observe?

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The Answer of Accounting for JIT
Vail operates a JIT plant assembling ceiling fans.The Sunset Model ceiling fam has a standard material cost of $28.40,a standard direct labor cost of $14.80,and overhead (fixed and variable)of $16.10.On Monday,a batch of 100 Sunset fans is completed.All of the materials for the 100 fans were on hand prior to Monday and had been previously recorded in the raw and in-process inventory account.
Required:
In analyzing the financial statements of a firm using JIT and another firm in the same industry not using JIT,what differences would you expect to observe?

Accounting for JIT Vail Operates a JIT Plant Assembling Ceiling Fans.The Sunset Model