Hepworth Company has implemented a JIT system and is considering the use of backflush costing....
90.2K
Verified Solution
Link Copied!
Question
Accounting
Hepworth Company has implemented a JIT system and is considering the use of backflush costing. Hepworth had the following transactions for the current fiscal year:
Purchased raw materials on account for $570,000.
Placed all materials received into production.
Incurred actual direct labor costs of $85,500.
Incurred actual overhead costs of $593,800.
Applied conversion costs of $641,400.
Completed all work for the month.
Sold all completed work.
Computed the difference between actual and applied costs.
Prepare the journal entries for backflush costing. Assume there are two trigger points: (1) the purchase of raw materials and (2) the completion of the goods. If no entry is required, select "No entry required" and leave the amount boxes blank or enter "0". For a compound transaction, if an amount box does not require an entry, leave it blank.
2. 3 & 4 2. 3 & 4
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
