43 of 5(2 complete) costing system. One of the company\'s products has a standar

Question

43 of 5(2 complete) costing system. One of the company's products has a standard direct materials cos s on account at $52 each. It purchased $6,300 of direct materials on account and inc T Record debits first, then credits. Exclude explanations from journal entries.) Requirements 1. Prepare summary journal entries for January. 2. The January 1, 2018, balance of the Raw and In-Process Inventory account was $110. Use a T-account to find the January 31 balance. 3. Use a T-account to determine whether conversion costs are overallocated or underallocated for the month. By how much? Prepare the journal entry to adjust the Conversion Costs account. Print Done ld

Explanation / Answer

Solution 1:

Solution 2:

Solution 3:

Journal Entries - Lipman Inc. Date Particulars Debit Credit Jan-18 Raw and In process inventory Dr $6,300.00              To Accounts Payable $6,300.00 (To purchase of raw material on account) Jan-18 Conversion cost Dr $15,000.00              To Cash $15,000.00 (Being conversion cost incurred) Jan-18 Raw and In process inventory Dr $16,250.00              To Conversion Cost (625*$26) $16,250.00 (To apply conversion cost on production) Jan-18 Finished goods inventory Dr $19,375.00              To Raw and In process inventory $19,375.00 (To record units completed) Jan-18 Accounts receivables Dr $32,240.00              To Sales Revenue $32,240.00 (To record sales revenue) Jan-18 Cost of goods sold Dr $19,220.00              To Finished goods inventory $19,220.00

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