21.13 Backflush, one trigger point.
(20 min)
1
Journal entries for August areas follows Entry (b) Conversion costs control
440,000
Various accounts (such as Accounts payable control and Wages payable)
440,000 conversion costs incurred) Entry (c) Finished goods control
945,000
Accounts payable control
525,000
Conversion costs allocated
420,000 standard costs of 21,000 units of finished goods produced at €45 per unit direct materials,
€25 per unit conversion costs, €20 per unit) Entry (d) Cost of goods sold
900,000
Finished goods control
900,000 standard costs of 20,000 units of finished goods sold at €45 per unit) Entry (e) Conversion costs allocated
420,000 Cost of goods sold
20,000
Conversion costs control
440,000
(underallocated conversion costs written off)
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