(L.OBJ. 3) Recording manufacturing costs in a JIT costing system [15—20 min]
Lally, Inc., produces universal remote controls, Lally uses a JIT costing system. One of the company’s products has a standard direct materials cost of $7 per unit and a standard conversion cost of $26 per unit.
During January 2011, Lally produced 575 units and sold 570. It purchased $6,800 of direct materials and incurred actual conversion costs totaling $14,000.
Requirements
1. Prepare summary journal entries for January.
2. The January 1, 2011, balance of the Raw and in-process inventory account was $40. Use a T-account to find the January 31 balance.
3. Use a T-account to determine whether Conversion costs are over- or under-allocated for the month. By how much? Give the journal entry to close the Conversion costs account.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.