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 2021, 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. Requirements 1. Prepare summary journal entries for January. 2. The January 1, 2021, 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 overallocated or underallocated for the month. By how much? Prepare the journal entry to adjust the Conversion Costs account.
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 2021, 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. Requirements 1. Prepare summary journal entries for January. 2. The January 1, 2021, 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 overallocated or underallocated for the month. By how much? Prepare the journal entry to adjust the Conversion Costs account.
Chapter5: Process Costing
Section: Chapter Questions
Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...
Related questions
Question
![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 2021,
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.
Requirements
1. Prepare summary journal entries for January.
2. The January 1, 2021, 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 overallocated or
underallocated for the month. By how much? Prepare the journal entry to adjust
the Conversion Costs account.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5e8ab320-a83e-481a-973c-45196dab667b%2F47059816-7f88-4253-ae77-29260191f325%2Fetz4o3j_processed.png&w=3840&q=75)
Transcribed Image Text: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 2021,
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.
Requirements
1. Prepare summary journal entries for January.
2. The January 1, 2021, 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 overallocated or
underallocated for the month. By how much? Prepare the journal entry to adjust
the Conversion Costs account.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 7 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning