Jensen Industries Bhd manufactures water heaters. It uses just-in-time (JIT) manufacturing system and uses back flush...

 

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Jensen Industries Bhd manufactures water heaters. It uses just-in-time (JIT) manufacturing system and uses back flush costing. The backflush costing adopted by the company has three (3) trigger points: 1. Purchase of direct materials and incurring conversion cost. 2. Completion of finished goods 3. Sale of finished goods The data tabulated below is for the month of January 2023: Purchase of raw materials Conversion cost incurred: Labor Overheads Standard direct material cost per unit Standard conversion cost: Labor Overhead RM 2,673,300 231,000 539,000 95.00 8.40 19.60 The direct materials purchased, and conversion cost incurred are recorded at actual cost. There were no opening inventories for raw materials, work-in-progress or finished goods on 1 January 2023. Jensen Industries Bhd manufactured and completed 28,000 finished units in January 2023 and sold 27,680 units. Required: a. Prepare summary journal entries for the month of January 2023, including the disposition of under or over- allocated conversion cost. Jensen Industries Bhd manufactures water heaters. It uses just-in-time (JIT) manufacturing system and uses back flush costing. The backflush costing adopted by the company has three (3) trigger points: 1. Purchase of direct materials and incurring conversion cost. 2. Completion of finished goods 3. Sale of finished goods The data tabulated below is for the month of January 2023: Purchase of raw materials Conversion cost incurred: Labor Overheads Standard direct material cost per unit Standard conversion cost: Labor Overhead RM 2,673,300 231,000 539,000 95.00 8.40 19.60 The direct materials purchased, and conversion cost incurred are recorded at actual cost. There were no opening inventories for raw materials, work-in-progress or finished goods on 1 January 2023. Jensen Industries Bhd manufactured and completed 28,000 finished units in January 2023 and sold 27,680 units. Required: a. Prepare summary journal entries for the month of January 2023, including the disposition of under or over- allocated conversion cost.

Answer rating: 100% (QA)

1 Purchase of Raw Materials Date Account Debit Credit Jan 31 Raw Materials Inventory 2673300 Accounts Payable 2673300 2 Conversion Cost Incurred Labor ... View the full answer