TOPIC: Backflush Accounting

54 STRATEGIC MANAGEMENT ACCOUNTING CHAPTER 13 1. P 40.00 120.00 60.00 2. Standard costs per unit Direct materials, 4 lbs. @ P10 Conversion costs: Direct labor, 3 hrs. @ P40 Factory overhead, 3 hrs. @P20 Actual data: Production, 20,000 units Materials purchases, 84,000 lbs. Payroll, 59,000 hrs. @ P41 Other conversion costs, PP1,239,000 Required: Prepare the journal entries to record the costs of materials and conversion costs using the backflush costing system assuming the backflush point is: 1. the point of sale 2 point of production 3. point of receipt and point of sales 4 point of receipt and point of production