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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PA: The following product Costs are available for Haworth Company on the production of chairs: direct...

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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.

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