You are the general manager of a highly automated coffee production plant in Laguna. You have been provided the following information for transactions that occurred during July. The production plant uses a JIT costing system. a. Raw material costing P300,000 were purchased. b. All material costing P300,000 were requisitioned for production. c. Direct labor costs of P200,000 were incurred. d. Actual factory overhead costs amounted to P995,000. e. Conversion costs allocated totaled P1,300,000. This includes the direct labor costs. f. All units are completed and immediately sold. What is the over-allocated or under-allocated conversion costs for the month? * , O P305,000 over-allocated O P195,000 under-allocated O P105,000 over-allocated O P105,000 under-allocated

You are the general manager of a highly automated coffee production plant in Laguna. You have been provided the following information for transactions that occurred during July. The production plant uses a JIT costing system. a. Raw material costing P300,000 were purchased. b. All material costing P300,000 were requisitioned for production. c. Direct labor costs of P200,000 were incurred. d. Actual factory overhead costs amounted to P995,000. e. Conversion costs allocated totaled P1,300,000. This includes the direct labor costs. f. All units are completed and immediately sold. What is the over-allocated or under-allocated conversion costs for the month? * , O P305,000 over-allocated O P195,000 under-allocated O P105,000 over-allocated O P105,000 under-allocated

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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