Reference no: EM133143439

Question - York Corporation manufactures accessories for marathon. 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

Products 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 Variances are written off to Cost of Goods Sold

Required -

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

b) Indicate the account balance after preparing the journal entries.