L.D. Ferreira, general manager of a highly automated coffee production plant in Sao Paulo, Brazil, has provided the following information for transactions that occurred during October. All amounts are in Brazilian cruzeiro. The production plant uses a JIT costing system.

(a) Raw materials costing Cr$300,000 were purchased. 

(b) All materials purchased were requisitioned for production. 

(c) Direct labor costs of Cr$200,000 were incurred. 

(d) Actual factory overhead costs amounted to Cr$995,000. 

(e) Applied conversion costs totaled Cr$1,300,000. This includes the direct labor cost. 

(f) All units were completed and immediately sold. 

Required: 

1. Determine the October 31 balance in the Cost of Goods Sold account. No adjustment has been made for overapplied or underapplied conversion cost. 

2. What was the amount of overapplied or underapplied conversion cost for the month?

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6-34. Analysis of Accounts With JIT Costing. L.D. Ferreira, general manager of a highly automated coffee production plant in Sao Paulo, Brazil, has provided the following information for transactions that occurred during October. All amounts are in Brazilian cruzeiro. The production plant uses a JIT costing system. (a) Raw materials costing Cr$300,000 were purchased. (b) All materials purchased were requisitioned for production. (c) Direct labor costs of Cr$200,000 were incurred. (d) Actual factory overhead costs amounted to Cr$995,000. (e) Applied conversion costs totaled Cr$1,300,000. This includes the direct labor cost. (f) All units were completed and immediately sold. Required: 1. Determine the October 31 balance in the Cost of Goods Sold account. No adjustment has been made for overapplied or underapplied conversion cost. 2. What was the amount of overapplied or underapplied conversion cost for the month?