that the unit's inventory has been steadily increasing.

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The following data are for Raymore for March $2020$:

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is considering. $($Record debits first, then credits. Exclude explanations from any journal entries.$)$

Begin by recording the entries Outdoor UnPlugged would use for the current sequential tracking, starting with the purchase of direct materials.

Journal Entry

Data table

Raymore 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 $($ $$90$ per unit$)$ and standard

conversion cost $($ $$52$ per unit$).$ Raymore produced $17,000$ finished units in March $2020$

and sold $16,800$ units. The actual direct materials cost per unit in March $2020$ was $$90,$

and the actual conversion cost per unit was $$53.$ Any under$-$ or overallocated conversion

costs are written off monthly to Cost of Goods Sold.

More info

Senior management of Outdoor UnPlugged suspects that the bonus plan in place

for the head of Raymore is behind this practice. Senior management of

Outdoor UnPlugged is contemplating to switch from the current sequential tracking

to a backflush costing system in order to stop the overproduction at Raymore.

Specifically, senior management of Outdoor UnPlugged is considering a backflush

costing system with the following two trigger points:

Purchase of direct materials

Sale of finished goods

Each mower takes $2$ hours to assemble. There are no beginning inventories of

materials or finished goods and no beginning or ending work$-$in$-$process

inventories.