Question: The Grand Meter Corporation manufactures electrical meters For August there

The Grand Meter Corporation manufactures electrical meters. For August, there were no beginning inventories of direct materials and no beginning or ending work in process. Grand Meter uses a JIT production system and backflush costing with three trigger points for making entries in the accounting system:
Purchase of direct materials and incurring of conversion costs
Completion of good finished units of product
Sale of finished goods
Grand Meter’s August standard cost per meter is direct materials, $ 25, and conversion cost $ 20. Grand Meter has no direct materials variances. The following data apply to August manufacturing:
Direct materials purchased .......... $ 550,000
Number of finished units manufactured .... 21,000
Conversion costs incurred .......... $ 440,000
Number of finished units sold ......... 20,000

Required
1. Prepare summary journal entries for August (without disposing of under-or overallocated conversion costs). Assume no direct materials variances.
2. Post the entries in requirement 1 to T-accounts for Materials and In-Process Inventory Control, Finished Goods Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.




Sale on SolutionInn
Sales7
Views357
Comments
  • CreatedMay 14, 2014
  • Files Included
Post your question
5000