Reference no: EM132752554

Ethel Corporation has provided the following information for transactions that occurred during April.

This Corporation uses a JIT costing system

Raw materials were purchased at a total cost of P291,000.

All materials purchased were requisitioned for production.

Direct labor costs of P231,000 were incurred.

Actual factory overhead costs amounted to P675,000

Applied conversion costs totalled P900,000. This included P231,000 of direct labor.

All units were completed.

Problem 1: The balance of conversion cost on April was:

Option 1: P6,000 Credit

Option 2: P296,000 Debit

Option 3: P6,000 Debit

Option 4: P296,000 Credit