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Bark Flash Company began operations in January 2021. Bark Flash Company manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing
Bark Flash Company began operations in January 2021. Bark Flash Company manufactures vehicular seat covers using a just-in-time production system supported by a backflush costing system. This system has two trigger points: (1) the purchase of raw materials, and (2) the sale of finished good units. Standard unit costs are P40 for raw materials and P25 for conversion costs. Bark Flash Company writes off any under- or over-allocated conversion costs immediately. The following data were available for January 2002: Production in good units 19,800 Sales of good units 19,750 Purchases of raw materials [20,000 units at P40] P800,000 Conversion costs incurred P496,000 The journal entry to record the manufacture of finished good units is
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