Compare just-in-time to a traditional accounting system. Sanchez Manufacturing received an order for 10,000 units. The company purchased and used $100,000 of materials for this order. The company incurred labor costs of $45,000 and other nonlabor manufacturing costs of $75,000.

The accounting period ended before the company completed the order. The firm had 5 percent of the total costs incurred still in Work-in-Process Inventory and 20 percent of the total costs incurred still in Finished Goods Inventory.

a. Use T-accounts to show the How of costs using backflush costing.

b. Use T-accounts to show the flow of costs using a traditional costing system.