Moretti Corporation Has Adopted a JIT Management System and Has $\$ 95,000$

question 172

Essay

Moretti Corporation has adopted a JIT management system and has the following transactions in March:
Mar 5 Incurred labor and overhead costs, $\$ 95,000$
Mar 31 Completed 650 units with standard costs of $\$ 94$ for direct materials and $\$ 128$ 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 on March 31.Omit explanation.

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Definitions:

Compact Disc

A physical medium for the storage and playback of digital audio and data, utilizing laser technology for reading and writing information.

Average Costs

Calculated by dividing the total cost of production by the quantity of output produced, indicating the cost per unit of output.

Output Increases

A rise in the quantity of goods or services produced by a firm or economy.

Scale of Operations

The size or level at which a company or plant is operating, indicating its capacity to produce goods or services.