Backflush Costing Hepworth Company has implemented at system and is considering the use of backflush costing. Hepworth had the following transactions for the current flsical year: 1. Purchased raw materials on account for $610,000 2. Placed all materials received into production 3. Incurred actual direct labor costs of $91,500 4. Incurred actual overhead costs of $535,400. 5. Applied conversion costs of $636,200. 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 traditionat costing. 1. Materials Inventory 610,000 Accounts Payable 616,000 2. Work in Process Inventory 610,000 Materials Inventory 10.000 91.500 3. Work-in-Process Inventory Wages Payable 135,400 4. Overhead Control Accounts Payable 25,400 5. Work in Process Inventory $94.700 596,700 5. Work-In-Process Inventory Overhead Control 56700 1.2.200 1.2.100 1.2.200 6: Finished Goods Inventory Work in Process Inventory 17. Cost of Goods Sold Vinished Goods Inventory 8 Cost of Goods Solo Overhead Control 1.00 40700 Prepare the journal entries for bath coating. 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 "o".For a compound transaction, it an amount box does not require an entry, leave it blank Bw Materials and Ts Process Inventory Accounts Payable 6100 2. 384. Conversion Cost Control Wages Payable III 5. Conversion Cost Control Accounts Payable 6. Finished Goods Inventory Raw Materials and In Process Inventory Conversion Cost Control 1 lm 1 l ml 7. Cost of Goods Sold Finished Goods Inventory 8 Cost of Goods Sold Conversion Cost Control 2. Assume the second trigger point in Requirement is the sale of goods. If an amount box does not require an entry, leave it blank Conversion Cost Control Accounts Payable What would change for the backflush.costing journal entre No entry for transaction is transaction is replaced in reg1 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. 1 an amount box does not require an entry, leave it blank Cash Conversion Cost Control Accounts Payable 88 What would change for the backflush-costing journal entries? No entry for transaction 1, transaction 6 is replaced in reg 1. 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. It an amount box does not require an entry, leave it blank. Cash 83 Finished Goods Inventory How would the backflush costing journal entries differ from Requirement 1 for(a)? No entry for transaction 1, transaction 6 and 7 are replaced in reqi. with the following entry How would the backtush corting journhi entries Gifter from Requirement 3 for (b)? 1 an amount box does not require an entry, teave it blank. Cost of Goods Sold Conversion Cost Control with the following entry
