Question Help Luxor, Inc. produces universal remote controls. Luxor uses a JIT c

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Question Help Luxor, Inc. produces universal remote controls. Luxor uses a JIT costing system. One of the company's products has a standard direct materials cost of $5 per unit and a standard conversion cost of $28 per unit. During January 2016, Luxor produced 600 units and sold 595 units on account at $52 each. purchased $4,500 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, 2016, balance of the Raw and In-Process Inventory account was $120. Use a T-account to find the January 31 balance. 3. Use a T-account to determine whether conversion costs are overalocated or underallocated for the month. By how much? Prepare the journal entry to adjust the Conversion Costs account Requirement 1. Prepare the summary journal entries for January (Record debits trst then crecits, Exclude explanations trom journai entres,) Journalize the purchase of raw materials. Accounts Debit Credit Date Jan. 2016 Journalize the actual conversion costs incurred. Debit Credit Date Accounts Jan. 2016 Choose from any list or enter any number in the input fields and then continue to the next question.

Explanation / Answer

1) Journal entries:

Debit

Credit

Raw and In-Process Inventory

4,500

Accounts Payable

4,500

Conversion Costs

14,000

Wages Payable, Accumulated Depreciation, etc

14,000

Finished Goods Inventory

19,800

Raw and In-Process Inventory (600*$5)

3,000

Conversion Costs (600*$28)

16,800

Accounts Receivable

30,940

Sales Revenue (595* $52)

30,940

Cost of Goods Sold (595 * $33)

19,635

Finished Goods Inventory

19,635

2)

Raw and In-Process Inventory

Balance

120

Purchase

4,500

Transfer to Finished Goods

3,000

Balance

1,620

3)

Conversion Costs

Incurred Conversion Costs

14,000

Transfer to Finished Goods

16,800

Balance

2,800

Conversion costs are overallocated by 2,800

?

Journal entry:

Dr. Conversion Costs $2,800

Cr. Cost of Goods Sold $2,800

Debit

Credit

Raw and In-Process Inventory

4,500

Accounts Payable

4,500

Conversion Costs

14,000

Wages Payable, Accumulated Depreciation, etc

14,000

Finished Goods Inventory

19,800

Raw and In-Process Inventory (600*$5)

3,000

Conversion Costs (600*$28)

16,800

Accounts Receivable

30,940

Sales Revenue (595* $52)

30,940

Cost of Goods Sold (595 * $33)

19,635

Finished Goods Inventory

19,635

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