Sparky Company manufactures aircraft parts.A backflush costing system is used and standard costs for the part follow:
The parts are scheduled for production only after orders are received.They are shipped immediately upon completion.Product costs are charged directly to Cost of Goods Sold.In July,6,000 parts were produced and shipped.Materials were purchased for cash at a cost of $10,000 and actual conversion costs were $12,000.
Required:
Prepare the necessary journal entries.

Question

Sparky Company manufactures aircraft parts.A backflush costing system is used and standard costs for the part follow:
  The parts are scheduled for production only after orders are received.They are shipped immediately upon completion.Product costs are charged directly to Cost of Goods Sold.In July,6,000 parts were produced and shipped.Materials were purchased for cash at a cost of $10,000 and actual conversion costs were $12,000.
Required:
Prepare the necessary journal entries.

Quizplus · Accepted Answer

The Answer of Sparky Company manufactures aircraft parts.A backflush costing system is used and standard costs for the part follow:
  The parts are scheduled for production only after orders are received.They are shipped immediately upon completion.Product costs are charged directly to Cost of Goods Sold.In July,6,000 parts were produced and shipped.Materials were purchased for cash at a cost of $10,000 and actual conversion costs were $12,000.
Required:
Prepare the necessary journal entries.

Sparky Company Manufactures Aircraft Parts