Falcon Industries manufactures customized industrial compounds. 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:
Required:
Record all journal entries for the monthly activities related to the above transactions if backflush costing is used. There were no materials variances during the period. Determine the amount of under or overallocated conversion costs.

Question

Falcon Industries manufactures customized industrial compounds. 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:
  Required:
Record all journal entries for the monthly activities related to the above transactions if backflush costing is used. There were no materials variances during the period. Determine the amount of under or overallocated conversion costs.

Quizplus · Accepted Answer

The Answer of Falcon Industries manufactures customized industrial compounds. 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:
  Required:
Record all journal entries for the monthly activities related to the above transactions if backflush costing is used. There were no materials variances during the period. Determine the amount of under or overallocated conversion costs.

Falcon Industries Manufactures Customized Industrial Compounds