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 $520,000.
2. Placed all materials received into production.
3. Incurred actual direct labor costs of $78,000.
4. Incurred actual overhead costs of $541,800.
5. Applied conversion costs of $585,400.
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 78f6d00c4032f99_2
			fill in the blank 78f6d00c4032f99_4
2.		fill in the blank 78f6d00c4032f99_6
			fill in the blank 78f6d00c4032f99_8
3.		fill in the blank 78f6d00c4032f99_10
			fill in the blank 78f6d00c4032f99_12
4.		fill in the blank 78f6d00c4032f99_14
			fill in the blank 78f6d00c4032f99_16
5.		fill in the blank 78f6d00c4032f99_18
			fill in the blank 78f6d00c4032f99_20
6.		fill in the blank 78f6d00c4032f99_22
			fill in the blank 78f6d00c4032f99_24
7.		fill in the blank 78f6d00c4032f99_26
			fill in the blank 78f6d00c4032f99_28
8.		fill in the blank 78f6d00c4032f99_30
			fill in the blank 78f6d00c4032f99_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 4c09ec0b5017fc3_2
			fill in the blank 4c09ec0b5017fc3_4
2.		fill in the blank 4c09ec0b5017fc3_6
			fill in the blank 4c09ec0b5017fc3_8
3 & 4.		fill in the blank 4c09ec0b5017fc3_10	fill in the blank 4c09ec0b5017fc3_11
		fill in the blank 4c09ec0b5017fc3_13	fill in the blank 4c09ec0b5017fc3_14
		fill in the blank 4c09ec0b5017fc3_16	fill in the blank 4c09ec0b5017fc3_17
5.		fill in the blank 4c09ec0b5017fc3_19
			fill in the blank 4c09ec0b5017fc3_21
6.		fill in the blank 4c09ec0b5017fc3_23	fill in the blank 4c09ec0b5017fc3_24
		fill in the blank 4c09ec0b5017fc3_26	fill in the blank 4c09ec0b5017fc3_27
		fill in the blank 4c09ec0b5017fc3_29	fill in the blank 4c09ec0b5017fc3_30
7.		fill in the blank 4c09ec0b5017fc3_32
			fill in the blank 4c09ec0b5017fc3_34
8.		fill in the blank 4c09ec0b5017fc3_36
			fill in the blank 4c09ec0b5017fc3_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 a84dc5f87f9cfe8_2	fill in the blank a84dc5f87f9cfe8_3
		fill in the blank a84dc5f87f9cfe8_5	fill in the blank a84dc5f87f9cfe8_6
		fill in the blank a84dc5f87f9cfe8_8	fill in the blank a84dc5f87f9cfe8_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 b9f92df57f8ff8d_2	fill in the blank b9f92df57f8ff8d_3
		fill in the blank b9f92df57f8ff8d_5	fill in the blank b9f92df57f8ff8d_6
		fill in the blank b9f92df57f8ff8d_8	fill in the blank b9f92df57f8ff8d_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 1bf459fe3ffefc8_2	fill in the blank 1bf459fe3ffefc8_3
		fill in the blank 1bf459fe3ffefc8_5	fill in the blank 1bf459fe3ffefc8_6
		fill in the blank 1bf459fe3ffefc8_8	fill in the blank 1bf459fe3ffefc8_9

with the following entry.