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