A firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. Total DM $360,000 Total DL $140,000 Total OH $70,000 Total completed and in process 20,000 units Units sold 19,480 Units in process 100 $500 of raw materials are still in the warehouse at the end of the period. Which journal entry appropriately backflushes costs to inventory accounts? A Debit: Finished Goods $7,560 Debit: RIP $2,300 Credit: COGS $9,860 B Debit: COGS $9,860 Credit: Finished Goods $7,560 Credit: WIP $1,800 Credit: RM $500 C Debit: COGS $9,860 Credit: Finished Goods $7,560 Credit: RIP $2,300 D Debit: Finished Goods $7,560 Debit: WIP $1,800 Debit: RM $500 Credit: COGS $9,860
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
A firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts.
| Total DM | $360,000 |
| Total DL | $140,000 |
| Total OH | $70,000 |
| Total completed and in process | 20,000 units |
| Units sold | 19,480 |
| Units in process | 100 |
$500 of raw materials are still in the warehouse at the end of the period. Which
A
Debit: Finished Goods $7,560
Debit: RIP $2,300
Credit: COGS $9,860
B
Debit: COGS $9,860
Credit: Finished Goods $7,560
Credit: WIP $1,800
Credit: RM $500
C
Debit: COGS $9,860
Credit: Finished Goods $7,560
Credit: RIP $2,300
D
Debit: Finished Goods $7,560
Debit: WIP $1,800
Debit: RM $500
Credit: COGS $9,860
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