The Ronowski Company produces telephones. For June, there were no beginning inventories of raw materials and no beginning and ending work in process. Ronowski uses a JIT production system and backflush costing with three trigger points for making entries in its accounting system:
• Purchase of direct (raw) materials
• Completion of good finished units of product
• Sale of finished goods
Ronowski's June standard cost per unit of telephone product is direct materials, $31.20; conversion costs, $18. There are three inventory accounts:
• Inventory: Raw
• Inventory: In-Process Control
• Finished Goods Control
The following data apply to June manufacturing:
Raw materials purchased ..................................... $6,360,000
Conversion costs incurred .................................... $3,696,000
Number of finished units manufactured ................... 200,000
Number of finished units sold ............................... 192,000
Required
1. Prepare summary journal entries for June (without disposing of under- or overallocated conversion costs). Assume no direct materials variances.
2. Post the entries in requirement 1 to T-accounts for applicable Inventory Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.