TechWorks Corporation assembles handheld computers that have scaled-down capabilities of laptop computers. Each handheld computer takes 6 hours to assemble. TechWorks uses a JIT production system and a backflush costing system with two trigger points. There are no beginning inventories of materials or finished goods. The following data are for August: i (Click the icon to view the August data.) Required 1. Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs. 2. Post the entries in requirement 1 to T-accounts for Inventory Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold. Now, prepare the entry for the conversion costs incurred. Journal Entry Accounts JE 2 Conversion Costs Control Various Accounts (such as Wages Payable Control) Next, prepare the entry for the completion of finished goods. JE 3 More info Direct materials purchased $ 3,010,000 Direct materials used Debit Credit Conversion costs incurred $ 2,814,000 $ 729,500 729,500 - 729,500 74500 729500 Conversion costs allocated $ 804,000 TechWorks records direct materials purchased and conversion costs incurred at actual costs. When finished goods are sold, the backflush costing system "pulls through" the standard direct material cost ($105 per unit) and standard conversion cost ($30 per unit). TechWorks produced 26,800 finished units in August and sold 24,500 units. The actual direct material cost per unit in August was $105, and the actual conversion cost per unit was $27. The Inventory Control account will include direct materials purchased but not yet in production, materials in work in process, and materials in finished goods but not sold. No conversion costs are inventoried. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold. Journal Entry Accounts Debit Credit Conversion Costs Allocated 804000 Cost of Goods Sold Conversion Costs Control