=+17-24 KK Backflush costing, two trigger points, completion of production and sale

(continuation of 17-23) OBJECTIVE 6 Assume the same facts as in Exercise 17-23, except now Verigon uses only two trigger points: the completion of good finished units of product and the sale of finished goods. Any under- or overallocated conversion costs are written off monthly to Cost of goods sold.

Chapter 17: Inventory management, just-in-time and simplified costing methods 685 M17_HORN3377_02_LT_C17.indd 685 2/09/13 4:00 PM Required 1 Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs.