Problem 1

Vision Enterprises manufactures converter boxes for high definition TVs. All processing
is initiated when an order is received. For March there were no beginning inventories.
Conversion Costs and Direct Materials are the only manufacturing cost accounts. Direct
Materials are purchased under a just-in-time system. Backflush costing is used with a finished
goods trigger point. Additional information is as follows:

Actual conversion costs $435,000

Standard materials costs per unit 115
Standard conversion cost per unit 85
Units produced 7,900
Units sold 7,600

Required:
Record all journal entries for the monthly activities related to the above transactions if backflush
costing is used.
Assume the following trigger points. (Journal entry should be recorded)
To record actual conversion costs:

To record finished goods:

To record sale of 7,600 units:

Problem 2
Tornado Electronics manufactures stereos. All processing is initiated when an order is
received. For April there were no beginning inventories. Conversion Costs and Direct Materials
are the only manufacturing cost accounts. Direct Materials are purchased under a just-in-time
system. Backflush costing is used with a finished goods trigger point. Additional information is
as follows:

Actual conversion costs $232,000

Standard materials costs per unit 60
Standard conversion cost per unit 140
Units produced 3,200
Units sold 2,800

Required:
Record all journal entries for the monthly activities related to the above transactions if backflush
costing is used.

Assume the following trigger points. (Journal entry should be recorded)

To record actual conversion costs:

To record finished goods:

To record sale of 2,800 units:

Problem 3
Corry Corporation manufactures filters for cars, vans, and trucks. A backflush costing
system is used and standard costs for a filter are as follows:

Direct materials $2.60

Conversion costs 4.20
Total $6.80

Filters are scheduled for production only after orders are received, and are shipped immediately
upon completion. This results in product costs being charged directly to cost of goods sold. In
December, 3,000 filters were produced and shipped. Materials were purchased at a cost of
$8,450 and actual conversion costs of $13,650 were recorded.

Required:
Prepare journal entries to record December's costs for the production of the filters.