More info Senior management of Outdoor Lawn suspects that the bonus plan in place for the head of Grand is behind this practice. Senior management of Outdoor Lawn is contemplating to switch from the current sequential tracking to a backflush costing system in order to stop the overproduction at Grand. Specifically, senior management of Outdoor Lawn is considering a backflush 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. Grand, a unit of Outdoor Lawn, manufactures a line of electric, cordless, lawn mowers, Senior management of Outdoor Lawn has noticed that Grand has been producing more lawn mowers than it has been seling, and that the unit's inventory has been steadily increasing. (Click the icon to view additional information.) The following data are for Grand for March 2020: (Click the icon to view the March data.) Read the requirements. Requirement 1. Prepare summary journal entries for March 2020 and post the entries to applicable T-accounts for boch methods the current sequential tracking and the backflush costing that senior management of Outdoor Lawn is considering. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the entries Outdoor Lawn would use for the current sequential tracking, starting with the purchase of direct materials. Data table Direct materials purchased $2,836,000 Conversion costs incurred \$ 728,100 Direct materials used \$ 2,550,000 Conversion costs allocated $600,000 Grand 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 ( $102 per unit) and standard conversion cost (\$24 per unit). Grand produced 25,000 finished units in March 2020 and sold 21,300 units. The actual direct materials cost per unit in March 2020 was $102, and the actual conversion cost per unit was $21. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold