Two major differences between the two systems are:
Under conventional costing raw materials go to raw materials
inventory, they are transferred to WIP. Under JIT/Backflush costing raw
materials just go to RIP. In JIT raw materials are only ordered when required.
Under conventional costing, direct labor and overhead are
charged direct to WIP. They are then moved to finished goods and cost of goods
sold (sequential processing).
Under JIT/backflush costing, these costs are
moved directly to finished goods inventory or cost of goods sold. Basic reason
is that – WIP is minimum, so costs move rapidly under Backflush costing system.
If you had financial problems, then it is time for you to smile. You only need to contact Mr. Benjamin with the amount you wish to borrow and the payment period that suits you and you will have your loan within three working days. I just benefited for the sixth time a loan of 700 thousand dollars for a period of 180 months with the possibility of paying before the expiration date. Mr Benjamin has be helping me with loan.Make contact with him and you will see that he is a very honest man with a good heart.His email is lfdsloans@lemeridianfds.com and his WhatApp phone number is + 1-989-394-3740
ReplyDelete