Question

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

Three trigger points:

- Purchase of direct materials

- Completion of good finished units of product

- Sale of finished goods

Spark's August standard cost per meter is direct​ materials, $23​, and conversion​ cost, $17. Spark has no direct materials variances. The following data apply to August​ manufacturing:
Direct Materials purchased	$ 535,000	Number of finished units manufactured	18,000
Conversion Cost Incurred	$ 420,000	Number of finished units sold	16,000

Question:

1.) Prepare summary journal entries for August​ (without disposing of​ under- or overallocated conversion​ costs). Spark has 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.

Answer 1