Tornado Electronics manufactures CD players. 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. Variances are offset to cost of goods sold. Additional information is as follows:
Required:
Record all journal entries for the monthly activities related to the above transactions based on backflush costing.

Question

Tornado Electronics manufactures CD players. 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. Variances are offset to cost of goods sold. Additional information is as follows:
  Required:
Record all journal entries for the monthly activities related to the above transactions based on backflush costing.

Quizplus · Accepted Answer

The Answer of Tornado Electronics manufactures CD players. 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. Variances are offset to cost of goods sold. Additional information is as follows:
  Required:
Record all journal entries for the monthly activities related to the above transactions based on backflush costing.

Tornado Electronics Manufactures CD Players