The following data apply to questions 6-8. Sit-On-It began operations in January 2008.

The following data apply to questions 6–8. Sit-On-It began operations in January 2008. Sit-On-It manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. This system has two trigger points: (1) the purchase of raw materials, and (2) the sale of finished good units. Standard unit costs are $40 for raw materials and $25 for conversion costs. Sit-On-It writes off any underallocated or overallocated conversion costs immediately. The following data were available for January 2008: