problem 1: Prepare the j entries for traditional and backflush costing. For backflush costing, suppose there are two trigger points:
a) The purchase of raw materials and
b) The completion of goods.
problem 2: Suppose the second trigger point in Requirement 1 is the sale of goods. What would change for the backflush costing journal entries?
problem 3: What if there is only one trigger point and it is (a) completion of goods or (b) sale of goods? How would the backflush costing journal entries distinct from Requirment 1 for (a) and (b)?
Hepworth Company has implemented a JIT system and is considering the utilization of backflush costing. Hepworth had the given transactions for the current fiscal year:
a) Purchased raw materials on account for $600 000.
b) Placed all the materials received into production.
c) Incurred actual direct labor costs of $90000.
d) Incurred actual overhead costs of $625 000.
e) Applied conversion cost of $675000.
f) Completed all the work for month.
g) Sold all the completed work.
h) find outd the difference between actual and applied costs.