Cyclone Electronics Manufactures Automobile Radios

question 11

Essay

Cyclone Electronics manufactures automobile radios. 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 (i.e., one trigger point). Additional information for the month is as follows:
Required:
Record all journal entries for the monthly activities related to the above transactions if backflush costing is used.

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Definitions:

Income

The financial gain received by an individual or entity, usually in the form of wages, salaries, or returns from investments.

MPC

Marginal Propensity to Consume, which indicates the proportion of additional income that a household is likely to spend on consumption rather than saving.

Disposable Income

The capital available to households for deploying into savings and spending post-tax.

Consumption

The act of using goods and services by households that leads to a decrease in their stock.