Lally, Inc. produces universal remote controls. Lally uses a JIT costing system. One of the Company's...
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Lally, Inc. produces universal remote controls. Lally 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 2018 Lally produced 500 units and sold 495 units on account at $45 each. It purchased $4,800 of direct materials on account and incurred actual conversion costs totaling $14,000. Requirements 1. Prepare summary journal entries for January. 2. The January 1, 2018, balance of the Raw and In-Process Inventory account was $70. Use a T-account to find the January 31 balance. 3. Use a T-account to determine whether conversion costs are over-allocated or under allocated for the month. By how much? Prepare the journal entry to adjust the Conversion Costs account. Lally, Inc. produces universal remote controls. Lally 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 2018 Lally produced 500 units and sold 495 units on account at $45 each. It purchased $4,800 of direct materials on account and incurred actual conversion costs totaling $14,000. Requirements 1. Prepare summary journal entries for January. 2. The January 1, 2018, balance of the Raw and In-Process Inventory account was $70. Use a T-account to find the January 31 balance. 3. Use a T-account to determine whether conversion costs are over-allocated or under allocated for the month. By how much? Prepare the journal entry to adjust the Conversion Costs account.
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1 Date Account Titles Debit Credit Working Jan 2018 Raw and In process inventory 4800 Accounts Payab... View the full answer
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
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