The Grand Meter Corporation manufactures electrical meters. For August, there were no beginning inventories of direct materials and no beginning or ending work in process. Grand Meter uses a JIT production system and backflush costing with three trigger points for making entries in the accounting system:

Purchase of direct materials and incurring of conversion costs

Completion of good finished units of product

Sale of finished goods

Grand Meter’s August standard cost per meter is direct materials, $ 25, and conversion cost $ 20. Grand Meter has no direct materials variances. The following data apply to August manufacturing:

Direct materials purchased ..........$ 550,000

Number of finished units manufactured .... 21,000

Conversion costs incurred ..........$ 440,000

Number of finished units sold ......... 20,000

Required

1. Prepare summary journal entries for August (without disposing of under-or overallocated conversion costs). Assume no direct materials variances.

2. Post the entries in requirement 1 to T-accounts for Materials and In-Process Inventory Control, Finished Goods Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.