Response to the following problem:
Pixel, Inc., produces Flat-screen displays. Pixel uses a JIT costing system. One of the company's products has a standard direct materials cost of $8 per unit and a standard conversion cost of $32 per unit.
During 20X5, Pixel produced 500,000 units and sold 480,000. It purchased $4,400,000 of direct materials and incurred actual conversion costs totaling $15,280,000.
Required:
1. Prepare summary journal entries for 20X5.
2. The January 1, 20X5, balance of the Raw and In Process Inventory account was $80,000. Use a T-account to find the December 31, 20X5, balance.
3. Use a T-account to determine whether conversion cost is over- or underallocated for the year. By how much? Give the journal entry to close the Conversion Cost account.