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 $780,000.
2. Placed all materials received into production.
3. Incurred actual direct labor costs of $117,000.
4. Incurred actual overhead costs of $812,200.
5. Applied conversion costs of $876,600.
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.		fill in the blank ec9e49073f8b049_2
			fill in the blank ec9e49073f8b049_4
2.		fill in the blank ec9e49073f8b049_6
			fill in the blank ec9e49073f8b049_8
3.		fill in the blank ec9e49073f8b049_10
			fill in the blank ec9e49073f8b049_12
4.		fill in the blank ec9e49073f8b049_14
			fill in the blank ec9e49073f8b049_16
5.		fill in the blank ec9e49073f8b049_18
			fill in the blank ec9e49073f8b049_20
6.		fill in the blank ec9e49073f8b049_22
			fill in the blank ec9e49073f8b049_24
7.		fill in the blank ec9e49073f8b049_26
			fill in the blank ec9e49073f8b049_28
8.		fill in the blank ec9e49073f8b049_30
			fill in the blank ec9e49073f8b049_32

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.		fill in the blank a8cfb6051004044_2
			fill in the blank a8cfb6051004044_4
2.		fill in the blank a8cfb6051004044_6
			fill in the blank a8cfb6051004044_8
3 & 4.		fill in the blank a8cfb6051004044_10	fill in the blank a8cfb6051004044_11
		fill in the blank a8cfb6051004044_13	fill in the blank a8cfb6051004044_14
		fill in the blank a8cfb6051004044_16	fill in the blank a8cfb6051004044_17
5.		fill in the blank a8cfb6051004044_19
			fill in the blank a8cfb6051004044_21
6.		fill in the blank a8cfb6051004044_23	fill in the blank a8cfb6051004044_24
		fill in the blank a8cfb6051004044_26	fill in the blank a8cfb6051004044_27
		fill in the blank a8cfb6051004044_29	fill in the blank a8cfb6051004044_30
7.		fill in the blank a8cfb6051004044_32
			fill in the blank a8cfb6051004044_34
8.		fill in the blank a8cfb6051004044_36
			fill in the blank a8cfb6051004044_38

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.

		fill in the blank d3308101106505c_2	fill in the blank d3308101106505c_3
		fill in the blank d3308101106505c_5	fill in the blank d3308101106505c_6
		fill in the blank d3308101106505c_8	fill in the blank d3308101106505c_9

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.

		fill in the blank e972def98fa6fc8_2	fill in the blank e972def98fa6fc8_3
		fill in the blank e972def98fa6fc8_5	fill in the blank e972def98fa6fc8_6
		fill in the blank e972def98fa6fc8_8	fill in the blank e972def98fa6fc8_9

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.

		fill in the blank 563267fb5f8a05b_2	fill in the blank 563267fb5f8a05b_3
		fill in the blank 563267fb5f8a05b_5	fill in the blank 563267fb5f8a05b_6
		fill in the blank 563267fb5f8a05b_8	fill in the blank 563267fb5f8a05b_9

with the following entry