Question
A firm uses backflush costing and values inventory using throughput accounting . All actual amounts are equal to budgeted amounts. Total DM $360,000 Total DL
A firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts.
Total DM | $360,000 |
Total DL | $140,000 |
Total OH | $70,000 |
Total completed and in process | 20,000 units |
Units sold | 19,480 |
Units in process | 100 |
$500 of raw materials are still in the warehouse at the end of the period. Which journal entry appropriately backflushes costs to inventory accounts?
Group of answer choices
Debit: Finished Goods $7,560
Debit: WIP $1,800
Debit: RM $500
Credit: COGS $9,860
Debit: COGS $9,860
Credit: Finished Goods $7,560
Credit: RIP $2,300
Debit: COGS $9,860
Credit: Finished Goods $7,560
Credit: WIP $1,800
Credit: RM $500
Debit: Finished Goods $7,560
Debit: RIP $2,300
Credit: COGS $9,860
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