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There are no beginning inventories. Information for April 2020 is:
Direct materials Purchased P880,000
Direct material used P850,000
Conversion costs incurred P422,000
Conversion Costs allocated P400,000
Costs transferred to finished goods P1,250,000
Cost of goods sold P1,190,000
Problem 1: Adjustment to Cost of goods sold involving over/under allocated conversion cost must be
a. Increase of 22,000
b. Decrease of 22,000
c. Increase of 90,000
d. Decrease of 90,000
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