Title: Falcon Industries manufactures customized industrial compounds. All processing is initiated when an ... Post by: ruskin on Nov 8, 2017 Falcon Industries manufactures customized industrial compounds. All processing is initiated when an order is received. For April there were no beginning inventories. Conversion costs and direct materials are the only manufacturing cost accounts. Direct materials are purchased under a just-in-time system. Journal entries are recorded at three trigger points using backflush costing: purchase of direct materials, completion of finished goods, and sale of product. Additional information is as follows:
Actual direct material costs $190,000 Actual conversion costs $478,000 Standard materials costs per unit $30 Standard conversion cost per unit $78 Units produced 6,200 Units sold 5,800 Required: Record all journal entries for the monthly activities related to the above transactions assuming that backflush costing is used. The company uses a standard costing system for recording the purchase and use of direct materials; and, the recording of conversion costs. Material price variances are recorded at the time of purchase then closed to cost of goods sold; all other variances are recorded at the completion of finished goods trigger point as a direct charge, or credit to Cost of Goods Sold. Title: Re: Falcon Industries manufactures customized industrial compounds. All processing is initiated when ... Post by: pacho on Nov 8, 2017 Content hidden
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