Remote Components recently installed a backflush-costing system. One department makes 4-inch speakers with a standard cost as follows:

Materials ………. $ 9.40

Conversion costs … 4.70

Total …………… $14.10

Speakers are scheduled for production only after orders are received, and products are shipped to customers immediately on completion. Therefore, no finished-goods inventories are kept, and product costs are applied directly to cost of goods sold.

In October, 2,200 speakers were produced and shipped to customers. Materials were purchased at a cost of $23,980, and actual conversion costs (labor plus manufacturing overhead) of $10,490 were recorded.

1. Prepare journal entries to record October’s costs for the production of 4-inch speakers.

2. Prepare a journal entry to recognize under applied or over applied conversion costs.