The Grand Meter Corporation manufactures electrical meters. For August, there were no beginning inventories of direct materials and no beginning or ending work in process. Grand Meter uses a JIT production system and backflush costing with two trigger points for making entries in the accounting system.

Two Trigger Points:

- Purchase of Direct Materials

- Sale of finished goods

Additional Information:

The inventory account is confined solely to direct materials, whether these materials are in a storeroom, in work in process, or in finished goods. No conversion costs are inventoried. They are allocated to the units sold at standard costs. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold.

Grand Meter's August standard cost per meter is direct material, $24, and conversion cost, $18. The following data apply to August manufacturing:
Direct Materials Purchased	$ 540,000	Number of finished units manufactured	19,000
Conversion Cost Incurred	$ 425,000	Number of finished units sold	17,000

Question:

1.	Prepare summary journal entries for August, including the disposition ofunder- or overallocated conversion costs. Grand Meter has no direct materials variances.
2.	Post the entries in requirement 1 to T-accounts for Inventory Control, Conversion Costs Control, Conversion Costs Allocated, and Cost of Goods Sold.