Under the just-in-time costing system,underallocated and overallocated conversion costs are treated just like underallocated and overallocated manufacturing overhead.

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Under the just-in-time costing system, all manufacturing costs, including conversion costs, are treated as overhead costs. Therefore, underallocated and overallocated conversion costs are treated in the same way as underallocated and overallocated manufacturing overhead. Both are adjusted at the end of the period using a predetermined allocation rate.

Under the Just-In-Time Costing System,underallocated and Overallocated Conversion Costs Are