Question 1

Dire Rhettic is a firm that produces portable sanitation units. This firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has NO variable overhead.

Total DM	$9,000
Total DL	$4,500
Total Fixed OH	$18,000
Total completed and in process	1,800 units
Units in finished goods	20
Units in process	10

The firm has $20 of raw materials at the end of the period. Which of the following are the correct balances of the COGS account before and after inventory costs are backflushed? (Round rates to the nearest cent if necessary.)

Group of answer choices

Before: $9,000 After: $8,830

Before: $31,500 After: $30,975

Before: $31,500 After: $30,955

Before: $9,000 After: $8,850

Question 2

A firm uses backflush costing to assign product costs to inventory and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has no variable overhead.

Total DM	$1,500
Total DL	$500
Total Fixed OH	$300
Total complete & in process	5,000 units
Ending raw materials	$0

The firm has 35 units in finished goods inventory and 25 units in process.

Which journal entry appropriately backflushes costs to inventory accounts?

Group of answer choices

Debit: COGS $18

Credit: RIP $7.50

Credit: Finished Goods $10.50

Debit: COGS $24

Credit: RIP $10

Credit: Finished Goods $14

Debit: RIP $10

Debit: Finished Goods $14

Credit: COGS $24

Debit: RIP $7.50

Debit: Finished Goods $10.50

Credit: COGS $18

Question 3

A firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts.

Total DM	$360,000
Total DL	$140,000
Total OH	$70,000
Total completed and in process	20,000 units
Units sold	19,480
Units in process	100

$500 of raw materials are still in the warehouse at the end of the period. Which journal entry appropriately backflushes costs to inventory accounts?

Group of answer choices

Debit: Finished Goods $7,560

Debit: WIP $1,800

Debit: RM $500

Credit: COGS $9,860

Debit: COGS $9,860

Credit: Finished Goods $7,560

Credit: RIP $2,300

Debit: COGS $9,860

Credit: Finished Goods $7,560

Credit: WIP $1,800

Credit: RM $500

Debit: Finished Goods $7,560

Debit: RIP $2,300

Credit: COGS $9,860

Question 4

A firm uses backflush costing to assign product costs to inventory and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has no variable overhead.

Total DM	$1,500
Total DL	$500
Total Fixed OH	$300
Total complete & in process	10,000 units
Ending raw materials	$0

The firm has 35 units in finished goods inventory and 25 units in process.

Which journal entry appropriately backflushes costs to inventory accounts?

Group of answer choices

Debit: RIP $5

Debit: Finished Goods $7

Credit: COGS $12

Debit: COGS $12

Credit: RIP $5

Credit: Finished Goods $7

Debit: RIP $3.75

Debit: Finished Goods $5.25

Credit: COGS $9

Debit: COGS $9

Credit: RIP $3.75

Credit: Finished Goods $5.25

Question 5

A firm has a machine that can produce a unit every 5 minutes. The machine supervisor things that the machine needs 20% for maintenance.

What is the rate-based waste for this machine per day?

Group of answer choices

Cannot be determined from this information.

230.4 units

288 units

57.6 units

Question 6

A firm uses backflush costing to assign product costs to inventory and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has no variable overhead.

Total DM	$1,500
Total DL	$500
Total Fixed OH	$300
Total complete & in process	10,000 units
Ending raw materials	$0

The firm has 135 units in finished goods inventory and 125 units in process.

Which journal entry appropriately backflushes costs to inventory accounts?

Group of answer choices

Debit: RIP $25

Debit: Finished Goods $27

Credit: COGS $52

Debit: COGS $39

Credit: RIP $18.75

Credit: Finished Goods $20.25

Debit: COGS $52

Credit: RIP $25

Credit: Finished Goods $27

Debit: RIP $18.75

Debit: Finished Goods $20.25

Credit: COGS $39

Question 7

A firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has NO variable overhead.

Total DM	$75,000
Total DL	$40,000
Total Fixed OH	$70,000
Total completed and in process	2,500 units
Units in finished goods	150
Units in process	100

The firm has $500 of raw materials at the end of the period. Which of the following is the correct balance for COGS after inventory costs have been backflushed?

Group of answer choices

$103,500

$103,000

$67,000

$67,500

Question 8

A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting.

At the beginning of February, the RIP account has a balance of $450. On February 10, the firm purchases 2,000 lbs of raw materials worth $20,000. At the end of the month, 30 lbs of raw materials (worth $300) remain unused. 100 units were in process ($10 material cost per unit)

If you searched for the RIP account in the firm's cost accounting records on February 15, what balance would that account show?

Group of answer choices

$750

$450

$300

$20,000

Question 9

A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting.

At the beginning of March, the RIP account has a balance of $100. On March 10, the firm purchases 500 lbs of raw materials worth $5,000. At the end of the month, 5 lbs of raw materials (worth $50) remain unused. 50 units were in process ($3 material cost per unit)

If you searched for the RIP account in the firm's cost accounting records on March 15, what balance would that account show?

Group of answer choices

$150

$4,850

$100

$5,000

Question 10

A firm has a machine that can produce a unit every 5 minutes. The machine supervisor things that the machine needs 20% for maintenance.

What is the management policy waste for this machine per day?

Group of answer choices

57.6 units

288 units

230.4 units

Cannot be determined from this information.