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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

  1. The completion of goods would include an entry of
  1. Debit to Cost of Goods sold of P1,250,000
  2. Debit to Raw and in process of P880,000
  3. Debit to Cost of Goods sold of P1,190,000
  4. Debit to Finished Goods of 1,250,000

  1. The sale of goods would include an entry of
  1. Debit to Cost of Goods sold of P1,250,000
  2. Debit to Raw and in process of P880,000
  3. Debit to Cost of Goods sold of P1,190,000
  4. Debit to Finished Goods of 1,250,000

  1. The backflushed amount from cost of goods sold to the raw and in process control account amounts to
  1. 90,000
  2. 60,000
  3. 30,000
  4. 120,000
  1. Adjustment to Cost of goods sold involving over/under allocated conversion cost must be
  1. Increase of 22,000
  2. Decrease of 22,000
  3. Increase of 90,000
  4. Decrease of 90,000

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