Which of the following statements accurately describes cost flows in manufacturing firm utilizing JIT?

A. Direct Labor and direct materials are maintained in a WIP account for long period of time.
B. Manufacturing Overhead is recordede i the raw materials account.
C. There's little need to maintain raw materials,WIP,or finished good.
D. There's no need to maintain a cost of goods sold account.

I would say C. You have little to no raw materials, which are immediately consumed by the production lines. Items that are being manufactured spend as little time in WIP as possible. Finished goods should be shipped as fast as possible to customers.

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