Recording manufacturing costs in a JIT costing system Lancer, Inc. produces universal remote controls. Lancer uses a JIT costing system. One of the company’s products has a standard direct materials cost of $9 per unit and a standard conversion cost of $35 per unit. During January 2014, Lancer produced 600 units and sold 595 units on account at $55 each. It purchased $6,300 of direct materials on account and incurred actual conversion costs totaling $17,500.
1. Prepare summary journal entries for January.
2. The January 1, 2014, balance of the Raw and In-Process Inventory account was $50. Use a T-account to find the January 31 balance.
3. Use a T-account to determine whether conversion costs are over allocated or under allocated for the month. By how much? Prepare the journal entry to adjust the Conversion Costs account.
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more