21-27 Backflush costing, two trigger points, incentives. Raymore, a unit of Outdoor Unplugged, manu- factures a line of electric, cordless, lawn mowers. Senior management of Outdoor UnPlugged has noticed that Raymore has been producing more lawn mowers than it has been selling, and that the unit's inventory has been steadily increasing. Senior management of Outdoor Unplugged suspects that the bonus plan in place for the head of Raymore is behind this practice. Senior management of Outdoor Unplugged is con- templating to switch from the current sequential tracking to a backflush costing system in order to stop the overproduction at Raymore. Specifically, senior management of Outdoor UnPlugged is considering a back- flush costing system with the following two trigger points: Purchase of direct materials Sale of finished goods Each mower takes 2 hours to assemble. There are no beginning inventories of materials or finished goods and no beginning or ending work-in-process inventories. The following data are for Raymore for March 2020: Direct materials purchased Direct materials used $1,550,000 $1,530,000 Conversion costs incurred Conversion costs allocated $901,000 $884,000 Raymore records direct materials purchased and conversion costs incurred at actual costs. It has no direct materials variances. When finished goods are sold, the backflush costing system "pulls through" standard direct materials cost ($90 per unit) and standard conversion cost ($52 per unit). Raymore produced 17,000