Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Backflush Costing Hepworth Company has implemented a JIT system and is considering the use of backflush costing. Hepworth had the following transactions for the current
Backflush Costing Hepworth Company has implemented a JIT 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 $360,000. 2. Placed all materials received into production. 3. Incurred actual direct labor costs of $54,000. 4. Incurred actual overhead costs of $375,400. 5. Applied conversion costs of $406,200. 6. Completed all work for the month. 7. Sold all completed work. 8. Computed the difference between actual and applied costs. Required: 1. Prepare the journal entries for traditional costing. 1. 2. 3. 4. 5. 6. 0 0 0 0 0 6. 7. 8. Prepare the journal entries for backflush costing. Assume there are two trigger points: (1) the purchase of raw materials and (2) the completion of the goods. If no entry is required, select "No entry required" and leave the amount boxes blank or enter "0". For a compound transaction, if an amount box does not require an entry, leave it blank. 1. 2. 3 & 4. 5. 6. 0000 00 6. 7. 8. 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. 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. How would the backflush costing journal entries differ from Requirement 1 for (a)? How would the backflush costing journal entries differ from Requirement 1 for (a)? with the following entry. 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. with the following entry
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started