Assume the same facts as in Exercise 19-23, except that Road Warrior now uses a backflush costing system with the following two trigger points:

■ Purchase of direct materials.
■ Sale of finished goods.

The Inventory Control account will include direct materials purchased but not yet in production, materials in work in process, and materials in finished goods but not sold. No conversion costs are inventoried. 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 overallocated conversion costs.
2. Post the entries in requirement 1 to T-accounts for Inventory Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.

Data From Exercise 19-23:

Road Warrior Corporation assembles handheld computers that have scaled-down capabilities of laptop computers. Each handheld computer takes 6 hours to assemble. Road Warrior uses a JIT production system and a backflush costing system with three trigger points:

■ Purchase of direct materials.
■ Completion of good finished units of product.
■ Sale of finished goods.

There are no beginning inventories of materials or finished goods. The following data are for August 2015:

Road Warrior records direct materials purchased and conversion costs incurred at actual costs. When finished goods are sold, the backflush costing system "pulls through" standard direct material cost ($102 per unit) and standard conversion cost ($28 per unit). Road Warrior produced 26,800 finished units in August 2015 and sold 26,400 units. The actual direct material cost per unit in August 2015 was $102, and the actual conversion cost per unit was $27.

Requirement From Exercise19-23:

Prepare summary journal entries for August 2015 (without disposing of under- or overallocated conversion costs, there should be four entries).