Road Warrior Corporation assembles handheld computers that have scaled-down capabilities of laptop computers. Each handheld computer takes 6 hours to assemble. Road Warrior uses a JIT production system and a backflush costing system with two trigger points. There are no beginning inventories of materials or finished goods. The following data are for August 2018: i (Click the icon view the August data.) Required 1.Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs. 2.Post the entries in requirement 1 to T-accounts for Finished Goods Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold. - X More info Direct materials purchased $ 2,942,000 Requirement 1. Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs. Direct materials used $ 2,600,000 Begin with the purchase of direct materials. (If no entry is required, select "No entry required" in the first line of the journal. Record debits first, and then credits. Explanations a Conversion costs incurred 24 726,300 Journal Entry Conversion costs allocated $ 775,000 Accounts Debit Credit Road Warrior records direct materials purchased and conversion costs incurred at actual costs. When JE 1 finished goods are sold, the backflush costing system "pulls through" the standard direct material cost ($104 per unit) and standard conversion cost ($31 per unit). Road Warrior produced 25,000 finished units in August 2018 and sold 24,500 units. The actual direct material cost per unit in August 2018 was $104, and the actual conversion cost per unit was $29. The Inventory Control account will include direct materials purchased but not yet in production, materials in work in process, and materials in finished goods but not sold. No conversion costs are inventoried. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold.
Road Warrior Corporation assembles handheld computers that have scaled-down capabilities of laptop computers. Each handheld computer takes 6 hours to assemble. Road Warrior uses a JIT production system and a backflush costing system with two trigger points. There are no beginning inventories of materials or finished goods. The following data are for August 2018: i (Click the icon view the August data.) Required 1.Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs. 2.Post the entries in requirement 1 to T-accounts for Finished Goods Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold. - X More info Direct materials purchased $ 2,942,000 Requirement 1. Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs. Direct materials used $ 2,600,000 Begin with the purchase of direct materials. (If no entry is required, select "No entry required" in the first line of the journal. Record debits first, and then credits. Explanations a Conversion costs incurred 24 726,300 Journal Entry Conversion costs allocated $ 775,000 Accounts Debit Credit Road Warrior records direct materials purchased and conversion costs incurred at actual costs. When JE 1 finished goods are sold, the backflush costing system "pulls through" the standard direct material cost ($104 per unit) and standard conversion cost ($31 per unit). Road Warrior produced 25,000 finished units in August 2018 and sold 24,500 units. The actual direct material cost per unit in August 2018 was $104, and the actual conversion cost per unit was $29. The Inventory Control account will include direct materials purchased but not yet in production, materials in work in process, and materials in finished goods but not sold. No conversion costs are inventoried. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold.
Chapter1: Financial Statements And Business Decisions
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Road Warrior Corporation assembles handheld computers that have scaled-down capabilities of laptop computers. Each handheld computer takes 6 hours to assemble. Road Warrior uses a JIT production system and a backflush costing system
with two trigger points. There are no beginning inventories of materials or finished goods. The following data are for August 2018:
9 (Click the icon to view the August data.)
Required
1.Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs.
2.Post the entries in requirement 1 to T-accounts for Finished Goods Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.
More info
Direct materials purchased $ 2,942,000
Requirement 1. Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs.
Direct materials used
$ 2,600,000
Begin with the purchase of direct materials. (If no entry is required, select "No entry required" in the first line of the journal. Record debits first, and then credits. Explanations a
Conversion costs incurred
2$
726,300
Journal Entry
Conversion costs allocated $
775,000
Accounts
Debit
Credit
Road Warrior records direct materials purchased
and conversion costs incurred at actual costs. When
JE 1
finished goods are sold, the backflush costing
system "pulls through" the standard direct material
cost ($104 per unit) and standard conversion cost
($31 per
finished units in August 2018 and sold 24,500 units.
The actual direct material cost per unit in August
2018 was $104, and the actual conversion cost per
unit). Road Warrior produced 25,000
o was
unit was $29. The Inventory Control account will
include direct materials purchased but not yet in
production, materials in work in process, and
materials in finished goods but not sold. No
conversion costs are inventoried. Any under- or
overallocated conversion costs are written off
monthly to Cost of Goods Sold.
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