(Appendix) Record manufacturing cost using JIT costing (Learning Objective 6) Pixel produces flat-screen displays. Pixel uses a JIT costing system. One of the com¬ pany’s products has a standard direct materials cost of $8 per unit and a standard con¬ version cost of $32 per unit.

During 2007, Pixel produced 500,000 units and sold 480,000. It purchased $4,400,000 of direct materials and incurred actual conversion costs totaling $15,280,000.

Requirements 1. Prepare summary journal entries for 2007.

2. The January 1, 2007, balance of the Raw and In Process Inventory account was $80,000. Use a T-account to find the December 31, 2007, balance.

3. Use a T-account to determine whether conversion cost is overallocated or underal¬ located for the year. By how much? Give the journal entry to close the Conversion Cost account.