(a) Explain the term ‘backflush accounting’ and the circumstances in which its use would be appropriate.
(b) CSIX Ltd manufactures fuel pumps using a just-in-time manufacturing system which is supported by a backflush accounting system. The backflush accounting system has two trigger points for the creation of journal entries.
These trigger points are:
The purchase of raw materials
The manufacture of finished goods
The transactions during the month of November were as follows:
Purchase of raw materials ...................£5,575 000
Conversion costs incurred:
Labour ....................................................£1,735,000
Overheads ..............................................£3,148,000
Finished goods completed (units) ............210,000
Sales for the month (units) .......................206,000
There were no opening inventories of raw materials, work in progress or finished goods at 1 November. The standard cost per unit of output is £48. This is made up of £26 for materials and £22 for conversion costs (of which labour comprises £8.20).

Required:
(i) Prepare ledger accounts to record the above transactions for November.
(ii) Briefly explain whether the just-in-time system operated by CSIX Ltd can be regarded as ‘perfect’.