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 f93e0708a01bfe3_2
			fill in the blank f93e0708a01bfe3_4
2.		fill in the blank f93e0708a01bfe3_6
			fill in the blank f93e0708a01bfe3_8
3.		fill in the blank f93e0708a01bfe3_10
			fill in the blank f93e0708a01bfe3_12
4.		fill in the blank f93e0708a01bfe3_14
			fill in the blank f93e0708a01bfe3_16
5.		fill in the blank f93e0708a01bfe3_18
			fill in the blank f93e0708a01bfe3_20
6.		fill in the blank f93e0708a01bfe3_22
			fill in the blank f93e0708a01bfe3_24
7.		fill in the blank f93e0708a01bfe3_26
			fill in the blank f93e0708a01bfe3_28
8.		fill in the blank f93e0708a01bfe3_30
			fill in the blank f93e0708a01bfe3_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 af109008606e053_2
			fill in the blank af109008606e053_4
2.		fill in the blank af109008606e053_6
			fill in the blank af109008606e053_8
3 & 4.		fill in the blank af109008606e053_10	fill in the blank af109008606e053_11
		fill in the blank af109008606e053_13	fill in the blank af109008606e053_14
		fill in the blank af109008606e053_16	fill in the blank af109008606e053_17
5.		fill in the blank af109008606e053_19
			fill in the blank af109008606e053_21
6.		fill in the blank af109008606e053_23	fill in the blank af109008606e053_24
		fill in the blank af109008606e053_26	fill in the blank af109008606e053_27
		fill in the blank af109008606e053_29	fill in the blank af109008606e053_30
7.		fill in the blank af109008606e053_32
			fill in the blank af109008606e053_34
8.		fill in the blank af109008606e053_36
			fill in the blank af109008606e053_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 ccd0acfc3009074_2	fill in the blank ccd0acfc3009074_3
		fill in the blank ccd0acfc3009074_5	fill in the blank ccd0acfc3009074_6
		fill in the blank ccd0acfc3009074_8	fill in the blank ccd0acfc3009074_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 ebc332f3aff3f91_2	fill in the blank ebc332f3aff3f91_3
		fill in the blank ebc332f3aff3f91_5	fill in the blank ebc332f3aff3f91_6
		fill in the blank ebc332f3aff3f91_8	fill in the blank ebc332f3aff3f91_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 5e02b0fd104801a_2	fill in the blank 5e02b0fd104801a_3
		fill in the blank 5e02b0fd104801a_5	fill in the blank 5e02b0fd104801a_6
		fill in the blank 5e02b0fd104801a_8	fill in the blank 5e02b0fd104801a_9

with the following entry.