Question :
81)
Tornado Electronics manufactures stereos. All processing initiated when an order : 1196170
81)
Tornado Electronics manufactures stereos. 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. Backflush costing is used with
a finished goods trigger point. Additional information is as follows:
Actual conversion costs$232,000
Standard materials costs per unit60
Standard conversion cost per unit140
Units produced3,200
Units sold2,800
Required:
Record all journal entries for the monthly activities related to the above transactions if backflush costing
is used.
81)
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82)
Corry Corporation manufactures filters for cars, vans, and trucks. A backflush costing system is used and
standard costs for a filter are as follows:
Direct materials$2.60
Conversion costs4.20
Total$6.80
Filters are scheduled for production only after orders are received, and are shipped immediately upon completion. This results in product costs being charged directly to cost of goods sold. In December, 3,000 filters were produced and shipped. Materials were purchased at a cost of $8,450 and actual conversion costs of $13,650 were recorded.
Required:
Prepare journal entries to record December’s costs for the production of the filters.
82)
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83)
Dutch Oven is a bakery company. All processing is in batches of 6 dozen. For March, there were no beginning inventories. Ending direct materials totalled $1,500. Conversion Costs and Direct Materials are the only baking cost accounts. Direct Materials are purchased under a just-in-time system. The company uses backflush costing with three trigger points at purchase of raw materials, completion of finished goods, and sale of finished goods. Additional information for the month is as follows:
Actual direct materials$82,000
Actual conversion costs$65,000
Standard materials cost per batch$
10.00
Standard conversion cost per batch$
8.00
Batches produced8,000
Batches sold 7,500
Required:
Record all journal entries for the monthly activities related to the above transactions if 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. 83)
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84)
Key Smith Company manufactures all types of locks for exterior doors. All processing is in batches of 100 and is initiated when an order is received. For August there were no beginning inventories. Each type of knob uses the same direct materials although the processing steps are slightly different. Conversion Costs and Direct Materials are the only manufacturing cost accounts. Direct Materials are purchased under a just-in-time system. Standard costs and actual costs were the same for the month. Backflush costing is used with purchase and sale trigger points. Additional information for the month is as follows:
Standard materials cost per batch$50
Standard conversion cost per batch$40
Batches produced7,000
Batches sold6,000
Required:
Record all journal entries for the monthly activities related to the above transactions if backflush costing is used. Do not inventory conversion costs. 84)
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85)
Cyclone Electronics manufactures automobile radios. All processing is initiated when an order is received. For March 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. Backflush costing is used with a finished goods trigger point (i.e., one trigger point). Additional information for the month is as follows:
Actual conversion costs$116,000
Standard materials cost per unit$
30
Standard conversion cost per unit$
70
Units produced1,600
Units sold1,400
Required:
Record all journal entries for the monthly activities related to the above transactions if backflush costing is used. 85)
_____________
86)
Corry Corporation manufactures filters for cars, vans, and trucks. A backflush costing system is used. Filters are scheduled for production only after orders are received and are shipped immediately upon completion. This results in product costs being charged directly to cost of goods sold. In December, 3,000 filters were produced and shipped. Materials were purchased at a cost of $8,450, and actual conversion costs of $13,650 were recorded.
Required:
Prepare journal entries to record December’s costs for the production of the filters, assuming there was no over/under allocated conversion cost. 86)
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87)
Dolls “R” Us manufactures children’s plastic dolls. For January there were no beginning inventories of direct materials, and no beginning or ending work in process. Conversion Costs and Direct Materials are the only manufacturing cost accounts. Journal entries are recorded when materials are purchased and when conversion costs are allocated at the end of the manufacturing process using backflush costing. Since February is the first month of the fiscal year, all actual costs are as budgeted. Additional information for the month is as follows:
February
Standard materials cost per unit$6.00
Standard conversion cost per unit$4.00
Units produced200,000
Units sold190,000
Required:
a.Record the journal entry for the purchase of direct materials.
b.Record the journal entry for actual conversion costs.
c.Record the journal entry for finished goods for the month.
d.Record the journal entry for the costs of goods sold for the month. 87)
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