Alfeo Corporations has adopted a JIT management system and has the following transactions in February
Feb 2 Incurred labor and overhead costs, $89,000
Feb 18 Completed 750 units with standard costs of $93 for direct materials and $146 for conversion costs
Open a T-account for Conversion Costs. Post appropriate entries to determine the amount of underallocated or overallocated overhead. Record the adjusting entry.
What will be an ideal response
Conversion Costs
Feb 2 89,000 109,500 Feb 18
20,500 Bal.
Date Accounts and Explanation Debit Credit
Adj. Conversion Costs 20,500
Cost of Goods Sold 20,500
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