Krgsmann AG has a plant that manufactures transistor radios. The production time is only a few...

 

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Krügsmann AG has a plant that manufactures transistor radios. The production time is only a few minutes per unit. The company uses a just-in-time production system and a backflush costing system with two trigger points for journal entries: • Purchase of direct (raw) materials • Completion of good finished units of product. There are no opening stocks. The following data pertain to April manufacturing: Direct (raw) materials purchased.. Direct (raw) materials used.. €8800000 8 500 000 Conversion costs incurred 4220000 Allocation of conversion costs 4000000 Costs transferred to finished goods. 12500000 Cost of goods sold. Required 1. Prepare summary journal entries for April (without disposing of under- or over-allocated conversion costs). Assume no direct 11900000 materials variances. 2. Post the entries in requirement 1 to the following T-accounts if applicable: Stock Control, Conversion Costs Control, Conversion Costs Allocated and Cost of Goods Sold. 3. Under an ideal JIT production system, how would the amounts in your journal entries differ from those in requirement 1? Krügsmann AG has a plant that manufactures transistor radios. The production time is only a few minutes per unit. The company uses a just-in-time production system and a backflush costing system with two trigger points for journal entries: • Purchase of direct (raw) materials • Completion of good finished units of product. There are no opening stocks. The following data pertain to April manufacturing: Direct (raw) materials purchased.. Direct (raw) materials used.. €8800000 8 500 000 Conversion costs incurred 4220000 Allocation of conversion costs 4000000 Costs transferred to finished goods. 12500000 Cost of goods sold. Required 1. Prepare summary journal entries for April (without disposing of under- or over-allocated conversion costs). Assume no direct 11900000 materials variances. 2. Post the entries in requirement 1 to the following T-accounts if applicable: Stock Control, Conversion Costs Control, Conversion Costs Allocated and Cost of Goods Sold. 3. Under an ideal JIT production system, how would the amounts in your journal entries differ from those in requirement 1?

Answer rating: 100% (QA)

1 Journal entries for April are as follows Entry a Stock Raw and Inprogress control 8800000 Accounts ... View the full answer