A firm uses backflush costing to assign product costs to inventory and values inventory using direct costing. All actual amounts below are equal to budgeted amounts. The firm has NO fixed overhead.

Total DM: $15,000 Total DL: $10,000 Overhead: $1,000

The firm has 30 units in finished goods inventory and 50 units in process. The firm does a count of raw materials inventory and finds $350 of raw materials inventory on hand at the end of the period. Which of the following is the journal entry to backflush costs to the finished goods account? (Assume the firm uses lean process costing as described in the textbook.)

	a.	Cannot be determined from this information.
	b.	$26,000
	c.	$10,100
	d.	$9,750