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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