Backflush costing, two trigger points, production completion and sale (continuation of 20-24). Assume the same facts as in Exercise 20-24 except now Road Warrior uses only two trigger points, the completion of a good finished unit of product and the sale of fin¬

ished goods. Any under- or overallocated conversion costs are written off monthly to cost of goods sold.

Required 1. Prepare summary journal entries for August, including the disposition of under or overallo¬

cated conversion costs.

2. Post the entries in requirement 1 to T-accounts for Finished Goods Control, Conversion Cost Control, Conversion Costs Allocated, and Costs of Goods hold.

PROBLEMS