A Firm That Has Implemented JIT Had the Following Transactions

Multiple Choice

A firm that has implemented JIT had the following transactions:
1) Materials were purchased on account for $40,000.
2) Materials were placed into production.
3) Actual direct labor costs were $6,000.
4) Actual overhead costs were $40,000.
5) Conversion costs applied were $42,000.
6) All work was completed for the month.
7) All completed work was sold.
8) The variance is recognized.
What will be the entry to record materials placed into production using the backflush approach?

A) Materials and In Process Inventory 40,000
Work-in-process Inventory 40,000
B) Materials Inventory 40,000
Accounts Payable 40,000
C) Work-in-Process Inventory 40,000
Materials and In Process Inventory 40,000
D) No entry is required