Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Littefield Company uses a backflush accounting system with three trigger points: Purchase, Completion, and Sale There are no beginning inventories. Information for April 2020 is:
Littefield Company uses a backflush accounting system with three trigger points:
Purchase, Completion, and Sale
There are no beginning inventories. Information for April 2020 is:
Direct materials Purchased | P880,000 |
Direct material used | P850,000 |
Conversion costs incurred | P422,000 |
Conversion Costs allocated | P400,000 |
Costs transferred to finished goods | P1,250,000 |
Cost of goods sold | P1,190,000 |
- The completion of goods would include an entry of
- Debit to Cost of Goods sold of P1,250,000
- Debit to Raw and in process of P880,000
- Debit to Cost of Goods sold of P1,190,000
- Debit to Finished Goods of 1,250,000
- The sale of goods would include an entry of
- Debit to Cost of Goods sold of P1,250,000
- Debit to Raw and in process of P880,000
- Debit to Cost of Goods sold of P1,190,000
- Debit to Finished Goods of 1,250,000
- The backflushed amount from cost of goods sold to the raw and in process control account amounts to
- 90,000
- 60,000
- 30,000
- 120,000
- Adjustment to Cost of goods sold involving over/under allocated conversion cost must be
- Increase of 22,000
- Decrease of 22,000
- Increase of 90,000
- Decrease of 90,000
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