CoursHeroTranscribedText: 2) Chen Manufacturing uses backflush costing. Chen has the following information for the most...
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CoursHeroTranscribedText: 2) Chen Manufacturing uses backflush costing. Chen has the following information for the most recent month of activity: Purchase of direct materials $725,000 Direct materials used $705,000 Conversion cost incurred $1,450,000 Direct materials standard cost $20 per unit Conversion cost at standard $40 per unit Units produced 35,000 units Units sold 33,000 units Required: 1. Prepare the journal entries for purchase of materials, conversion costs, the completion of product during the month, the sale of product, and the closing entries for conversion costs and material costs 2. What is the final amount for cost of goods sold? 3. Under what conditions is backflush costing used in practice
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