=+Verigon records direct materials purchased and conversion costs incurred at actual costs. When finished goods are sold, the backflush costing system ‘pulls through’ standard direct materials cost ($95 per unit) and standard conversion cost ($22 per unit).

Verigon produced 18250 finished units in July and sold 17750 units.

Required 1 Prepare summary journal entries for August. Write off any over- or underallocated conversion costs to Cost of goods sold.