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?

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...
icon
Related questions
icon
Concept explainers
Topic Video
Question
100%

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?

Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Cost Accounting
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College