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Question - JYD Corporation had provided the following information for transactions that occurred during September. The following uses the JIT costing system:
a. Raw materials costing P600,000 were purchased
b. All materials costing P600,000 were used in production
c. Direct labor costs of P400,000 were incurred.
d. Actual factory overhead costs amounted to P1,990,000
e. Applied conversion costs totalled P2,600,000. This includes the direct labor cost.
f. All units are completed and immediately sold.
Required - Compute the over or under applied conversion costs?
a. P610,000 over
b. P390,000 under
d. P210,000 under
c. P210,000 over
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