Luxor, Inc., produces universal remote controls. Luxor uses a JIT costing system. One of the company's products has a standard direct materials cost of \(\$ 8\) per unit and a standard conversion cost of \(\$ 32\) per unit.

During January 2007, Luxor produced 500 units and sold 480. It purchased \(\$ 4,400\) of direct materials and incurred actual conversion costs totaling \(\$ 15,280\).

Requirements 

1. Prepare summary journal entries for January. 

2. The January 1,2007 , balance of the Raw and In-Process Inventory account was \(\$ 80\). Use a T-account to find the January 31 balance. 

3. Use a \(\mathrm{T}\)-account to determine whether conversion cost is over- or underallocated for the month. By how much? Give the journal entry to close the Conversion Costs account.