Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Backflush Costing Hepworth Company has implemented a dit system and is considering the use of backflush costing. Hepworth had the following transactions for the current

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Backflush Costing Hepworth Company has implemented a dit system and is considering the use of backflush costing. Hepworth had the following transactions for the current fiscal year: 1. Purchased raw materials on account for $590,000, 2. Placed all materials received into production 3. Incurred actual direct labor costs of $88,500. 4. Incurred actual overhead costs of $614,600. 5. Applied conversion costs of $653,800. 6. Completed all work for the month. 7. Sold all completed work. 8. Computed the difference between actual and applied costs. 1. Prepare the journal entries for traditional costing, Materials Inventory 590.000 Accounts Payable 590,000 2 Work-in-Process Inventory 590,000 Materials Inventory 590,000 3 Work-in-Process Inventory 88,500 Wages Payable 88,500 Overhead Control 4. 614,600 Accounts Payable 614,600 5. Work-in-Process Inventory 590,000 Overhead Control 590,000 X 6. Finished Goods Inventory 1.278.400 Work-in-Process Inventory 1,278,400 7. Cost of Goods Sold 1.278.400 X Finished Goods Inventory 1.278.400 X 8. cost of Goods Sold Overhead Control 2. Assume the second trigger point in Requirement 1 is the sale of goods. If an amount box does not require an entry, leave it blank. What would change for the backflush-costing journal entries? with the following entry. Feedback 3. Assume there is only one trigger point and it is (a) completion of the goods or (b) sale of goods. If an amount box does not require an entry, leave it blank. Feedback How would the backflush costing journal entries differ from Requirement 1 for (a)? with the following entry. Feedback How would the backflush costing Journal entries differ from Requirement 1 for (b)? If an amount box does not require an entry, leave it blank. 10 Feedback How would the backflush costing journal entries differ from Requirement 1 for (b)? If an amount box does not require an entry, leave it blank. Feedback with the following entry. Feedback

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ISE Managerial Accounting

Authors: Ray H. Garrison, Eric Noreen, Peter C. Brewer

17th Edition

1260575683, 9781260575682

More Books

Students also viewed these Accounting questions

Question

Discuss the importance of algorithms in computer science.

Answered: 1 week ago

Question

What are some main stakeholders in the health care payer system?

Answered: 1 week ago