Recording manufacturing costs in a JIT costing system

Lancer, Inc. produces universal remote controls. Lancer uses a JIT costing system. One of the companys products has a standard direct materials cost of $9 per unit and a standard conversion cost of $35 per unit. During January 2021, Lancer produced 600 units and sold 595 units on account at $55 each. It purchased $6,300 of direct materials on account and incurred actual conversion costs totaling $17,500.

Requirements1. Prepare summary journal entries for January.

2. The January 1, 2021, balance of the Raw and In-Process Inventory account was $50. Use a T-account to find the January 31 balance.

3. Use a T-account to determine whether conversion costs are overallocated or underallocated for the month. By how much? Prepare the journal entry to adjust the Conversion Costs account.