Backflush costing Consider the following data pertaining to March for a firm that has adopted JIT. 11,200 11,060 Production units Sales units ($20 per unit) Standard production costs Direct material $4 Conversion costs 8 Assume that there were no cost or usage variances for March, and the quantity of material used equaled the quantity purchased. All material is purchased on account, and all units started were completed. a. Assuming that the company uses a traditional costing system, record the journal entries to recognize the following: 1. purchase of material 2. incurrence of conversion costs 3. completion of the month's production 4. sale of the month's production Note: If an entry is not required, list "N/A" for the account names and put zero in for the amounts or leave blank. Account Debit Credit 1 . o 0 0 0 To record purchase of material 2 0 0 O > To record the incurrence of conversion costs 3 - 0 o 0 0 O O To record costs in WIP inventory A 0 0 0 0 To record the transfer of costs from WIP to FG 4 . 0 0 0 O To record the sale of inventory 0 0 0 0 To record the cost of sale of inventory b. Assuming that the company initially charges all costs to Cost of Goods Sold and then uses backflush costing to assign costs to inventories at the end of the period, record the journal entries to recognize the following: 1. incurrence of conversion costs 2. completion of production 3. backflushing of costs to inventories Note: If an entry is not required, list "N/A" for the account names and put zero in for the amounts or leave blank. Account Debit Credit 1 0 0 0 0 To record the incurrence of conversion costs 2 0 0 0 O To record the completion of production 3 A 0 o 0 0 To record the backflush of costs to inventories Please answer all parts of the