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

question 97

Essay

Blair 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.

---

Definitions:

Present Value Calculation

A financial process that determines the current worth of a future cash flow, stream of cash flows, or an investment, based on a specific discount rate.

Declining-Balance Depreciation

Declining-Balance Depreciation is an accelerated depreciation method that calculates higher depreciation expenses in the earlier years of an asset's life, decreasing over time.

Lease Liability

A financial obligation representing the present value of all future lease payments a lessee is committed to make under lease agreements.

Invests

The act of allocating resources, usually money or capital, in something to earn financial returns or gain profitable outcomes.