Backflush costing and JIT production. The Acton Corporation manufactures electrical meters. For August, there were no beginning inventories of direct materials and no beginning or ending work in process. Acton uses a JIT production system and backflush costing with three trigger points for making entries in the accounting system: Purchase of direct materials-debited to Inventory: Materials and In-Process Control Completion of good finished units of product-debited to Finished Goods Control Sale of finished goods Acton's August standard cost per metre is direct material, $25; and conversion cost, $20. The following data apply to August manufacturing:LO1

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Direct materials purchased $550,000 Conversion costs incurred $440,000 Number of finished units manufactured 21,000 Number of finished units sold 20,000