Hot Flash Corporation manufactures sparkplugs. A backflush costing system is used and standard costs for a sparkplug are as follows: $$\begin{array} { l l }
\text { Direct materials } & \$ 1.30 \
\text { Conversion costs } & \underline { 2.10 } \
\text { Total } & \$ 3.40
\end{array}$$ Sparkplugs 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, 6,000 sparkplugs were produced and shipped. Materials were purchased at a cost of $7,800 and actual conversion costs of $12,600 were recorded.
Required:
Prepare journal entries to record December's costs for the production of the sparkplugs.

Question

Hot Flash Corporation manufactures sparkplugs. A backflush costing system is used and standard costs for a sparkplug are as follows: $$\begin{array} { l l } 
\text { Direct materials } & \$ 1.30 \
\text { Conversion costs } & \underline { 2.10 } \
\text { Total } & \$ 3.40
\end{array}$$ Sparkplugs 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, 6,000 sparkplugs were produced and shipped. Materials were purchased at a cost of $7,800 and actual conversion costs of $12,600 were recorded.
Required:
Prepare journal entries to record December's costs for the production of the sparkplugs.

Quizplus · Accepted Answer

The Answer of Hot Flash Corporation manufactures sparkplugs. A backflush costing system is used and standard costs for a sparkplug are as follows: $$\begin{array} { l l } 
\text { Direct materials } & \$ 1.30 \
\text { Conversion costs } & \underline { 2.10 } \
\text { Total } & \$ 3.40
\end{array}$$ Sparkplugs 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, 6,000 sparkplugs were produced and shipped. Materials were purchased at a cost of $7,800 and actual conversion costs of $12,600 were recorded.
Required:
Prepare journal entries to record December's costs for the production of the sparkplugs.

Hot Flash Corporation Manufactures Sparkplugs Sparkplugs Are Scheduled for Production Only After Orders Are Received