Tornado Electronics Manufactures CD Players

question 54

Essay

Tornado Electronics manufactures CD players.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.Journal entries are recorded at three trigger points using backflush costing: purchase of direct materials,completion of finished goods,and sale of product.Variances are offset to cost of goods sold.Additional information is as follows:

Required:
Record all journal entries for the monthly activities related to the above transactions based on backflush costing.

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Definitions:

Finance Charge

The actual cost of a loan in dollars and cents.

Intrastate Commerce

Business activities that have no out-of-state connections.

Interstate Commerce

Interstate commerce refers to any trade, traffic, or transportation involving the crossing of state lines within the United States, governed by federal regulations.

Local Commerce

The exchange of goods and services within a particular geographic area, usually within the confines of a city or town.