A firm uses backflush costing to assign product costs to inventory and values inventory using direct costing. All actual amounts below are equal to budgeted amounts. The firm has NO fixed overhead. Total DM: $15,000 Total DL: $10,000 Overhead: $1,000 The firm has 30 units in finished goods inventory and 50 units in process. The firm does a count of raw materials inventory and finds $350 of raw materials inventory on hand at the end of the period. Which of the following is the journal entry to backflush costs to the finished goods account? (Assume the firm uses lean process costing as described in the textbook.) a. $10,100 b. $9,750 c. Cannot be determined from this information. d. $26,000
Standard cost details or percentage of complete in ending units in work in progress inventory should not be provided in the question. |
Correct option is C |
Cannot be determined from this information. |
A firm uses backflush costing to assign product costs to inventory and values inventory using dir...
A firm uses a backflush system and lean process costing (as described in the textbook). The firm values inventory using direct costing. At the beginning of April, the firm has $0 in all inventory accounts. Actual and budgeted costs are the same. On April 4, the firm purchases 200 units of raw materials for $25,000. It uses all 200 units of these raw materials, leaving $0 of raw materials in the warehouse at the end of April. During the month...
NOTE: This problem had a mistake, and the corrected portions are italicized below. A firm uses a backflush system and lean process costing (as described in the textbook). The firm values inventory using direct costing. At the beginning of April, the firm has $0 in all inventory accounts. Actual and budgeted costs are the same. On April 4, the firm purchases 200 units of raw materials for $25,000. It uses all 200 units of these raw materials, leaving $0 of...
Backflush Costing Kenkel, Ltd, uses backfush costing to account for its monufacturing costs. The trigger points are the purchase Prepare journal entries to account for the following: For a compound transaction, if an amount box does not require an entry, leave ir blank or enter "or. ir no entry required (Hint: use a single account for raw materials and work in process) of materials, the completion of goods, and the sale of goods. an entry, leave it blank or enter...
Backflush costing and JIT production. The Grand Meter Corporation manufactures electrical meters. For August, there were no beginning inventories of the direct materials and no beginning or ending work in process. Grand Meter uses a JIT production system and backflush costing with three trigger points for making entries in the accounting system: - Purchase of direct materials and incurring of conversion costs - Completion of good finished units of production - Sale of finished goods Grand Meter's August standard cost...
Yehuda Corporation makes baby monitors and uses all production system and a backflush costing system. For the month of February 2018, there were no beginning finished goods, no beginning inventories of raw materials, and no beginning or ending work in process. The February standard costs per monitor were, direct materials $20.00 and conversion costs $16.00. The following data pertain to February 2018 manufacturing Raw materials and components purchased $1,020,000 Conversion costs incurred $ 780,000 Number of monitors made $ 50,000...
Babb Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance Ending Balance Raw materials $ 11,100 $ 15,700 Work in process $ 32,200 $ 14,100 Finished goods $ 101,000 $ 120,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,700 machine-hours and incur...
Babb Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Beginning Balance Ending Balance Raw materials $ 11,000 $ 15,400 Work in process $ 32,300 $ 14,000 Finished goods $ 102,000 $ 125,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,100 machine-hours and incur...
Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year: Raw materials Work in process Finished goods Beginning Balance $ 11,600 $ 32,600 $102,000 Ending Balance $ 15,900 $ 14,300 $125,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,400 machine-hours and incur $261,000 in manufacturing...
Bakerston Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year Raw materials Work in process Finished goods $ 11,700 32,000 $107,000 $ 15,200 $ 14,300 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 17,300 machine-hours and incur $276,800 in manufacturing overhead cost. The following transactions were...
Alam Company is a manufacturing firm that uses job-order costing. At the beginning of the year, the company's inventory balances were as follows: Raw materials $ 24,300 Work in process $ 73,300 Finished goods $ 27,300 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 45,300 machine-hours and incur $181,200 in manufacturing overhead cost. The following transactions were recorded for the...