Assume the same facts as in Exercise 20-24, except now Road Warrior uses only two trigger points, the completion of good finished units of product and the sale of finished goods. Any under or overallocated conversion costs are written off monthly to Cost of Goods Sold.
REQUIRED
1. Prepare summary journal entries for August, including the disposition of under- or over allocated conversion costs.
2. Post the entries in requirement 1 to T-accounts for Finished Goods Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.