Record the entry for the completion of finished goods. Data table TechWorks records direct materials purchased and conversion costs incurred at actual costs. It has no direct materials variances. When finished goods are sold, the backflush costing system "pulls through" standard direct materials cost ( $100 per unit) and standard conversion cost ( $27 per unit). TechWorks produced 25,000 finished units in March 2020 and sold 23,700 units. The actual direct materials cost per unit in March 2020 was $100, and the actual conversion cost per unit was $26. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold. Requirements 1. Prepare summary journal entries for March 2020 and post the entries to applicable T-accounts for both methods the current sequential tracking and the backflush costing that senior management of Outdoor Garden is considering. 2. Refer to your answer in requirement 1 . How is operating income going to differ under backflush costing compared to the current sequential tracking? 3. Do you think that switching to the backflush costing system is going to accomplish the goal of Outdoor Garden's senior management to stop the overproduction at TechWorks? TechWorks, a unit of Outdoor Garden, manufactures a line of electric, cordless, lawn mowers. Senior management of Outdoor Garden has noticed that TechWorks has been producing more lawn mowers than it has been selling, and that the unit's inventory has been steadily increasing. (Click the icon to view additional information.) The following data are for TechWorks for March 2020: (Click the icon to view the March data.) Read the requirements. Requirement 1. Prepare summary journal entries for March 2020 and post the entries to applicable T-accounts for both methods the current sequential tracking and the backflush costing that senior management of Outdoor Garden is considering. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the entries Outdoor Garden would use for the current sequential tracking, starting with the purchase of direct materials. Now prepare the entry to record the conversion costs incurred. Now prepare the entry to record the conversion costs incurred. Prepare the entry to record work-in-process. Record the entry for the completion of finished goods. Record the entry for the completion of finished goods. Data table TechWorks records direct materials purchased and conversion costs incurred at actual costs. It has no direct materials variances. When finished goods are sold, the backflush costing system "pulls through" standard direct materials cost ( $100 per unit) and standard conversion cost ( $27 per unit). TechWorks produced 25,000 finished units in March 2020 and sold 23,700 units. The actual direct materials cost per unit in March 2020 was $100, and the actual conversion cost per unit was $26. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold. Requirements 1. Prepare summary journal entries for March 2020 and post the entries to applicable T-accounts for both methods the current sequential tracking and the backflush costing that senior management of Outdoor Garden is considering. 2. Refer to your answer in requirement 1 . How is operating income going to differ under backflush costing compared to the current sequential tracking? 3. Do you think that switching to the backflush costing system is going to accomplish the goal of Outdoor Garden's senior management to stop the overproduction at TechWorks? TechWorks, a unit of Outdoor Garden, manufactures a line of electric, cordless, lawn mowers. Senior management of Outdoor Garden has noticed that TechWorks has been producing more lawn mowers than it has been selling, and that the unit's inventory has been steadily increasing. (Click the icon to view additional information.) The following data are for TechWorks for March 2020: (Click the icon to view the March data.) Read the requirements. Requirement 1. Prepare summary journal entries for March 2020 and post the entries to applicable T-accounts for both methods the current sequential tracking and the backflush costing that senior management of Outdoor Garden is considering. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin by recording the entries Outdoor Garden would use for the current sequential tracking, starting with the purchase of direct materials. Now prepare the entry to record the conversion costs incurred. Now prepare the entry to record the conversion costs incurred. Prepare the entry to record work-in-process. Record the entry for the completion of finished goods
