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A firm uses backflush costing to assign product costs to inventory and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has no variable overhead. Total DM $1,500 Total DL $500 Total Fixed OH $300 Total complete & in process 10,000 units Ending raw materials $0 The firm has 35 units in finished goods inventory and 25 units in process. Which journal entry appropriately backflushes costs to inventory accounts? O Debit: RIP $5 Debit: Finished Goods $7 Credit: COGS $12 O Debit: COGS $12 Credit: RIP $5 Credit: Finished Goods $7 O Debit: RIP $3.75 Debit: Finished Goods $5.25 Credit: COGS $9 O Debit: COGS $9 Credit: RIP $3.75 Credit: Finished Goods $5.25

A firm uses backflush costing to assign product costs to inventory and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has no variable overhead. Total DM $1,500 Total DL $500 Total Fixed OH $300 Total complete & in process 10,000 units Ending raw materials $0 The firm has 35 units in finished goods inventory and 25 units in process. Which journal entry appropriately backflushes costs to inventory accounts? O Debit: RIP $5 Debit: Finished Goods $7 Credit: COGS $12 O Debit: COGS $12 Credit: RIP $5 Credit: Finished Goods $7 O Debit: RIP $3.75 Debit: Finished Goods $5.25 Credit: COGS $9 O Debit: COGS $9 Credit: RIP $3.75 Credit: Finished Goods $5.25

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 13P: Webster Company uses backflush costing to account for its manufacturing costs. The trigger points...
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A firm uses backflush costing to assign product costs to inventory and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has no variable overhead. Total DM $1,500 Total DL $500 Total Fixed OH $300 Total complete & in process 10,000 units Ending raw materials $0 The firm has 35 units in finished goods inventory and 25 units in process. Which journal entry appropriately backflushes costs to inventory accounts? Debit: RIP $5 Debit: Finished Goods $7 Credit: COGS $12 O Debit: COGS $12 Credit: RIP $5 Credit: Finished Goods $7 Debit: RIP $3.75 Debit: Finished Goods $5.25 Credit: COGS $9 O Debit: COGS $9 Credit: RIP $3.75 Credit: Finished Goods $5.25
Transcribed Image Text:A firm uses backflush costing to assign product costs to inventory and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has no variable overhead. Total DM $1,500 Total DL $500 Total Fixed OH $300 Total complete & in process 10,000 units Ending raw materials $0 The firm has 35 units in finished goods inventory and 25 units in process. Which journal entry appropriately backflushes costs to inventory accounts? Debit: RIP $5 Debit: Finished Goods $7 Credit: COGS $12 O Debit: COGS $12 Credit: RIP $5 Credit: Finished Goods $7 Debit: RIP $3.75 Debit: Finished Goods $5.25 Credit: COGS $9 O Debit: COGS $9 Credit: RIP $3.75 Credit: Finished Goods $5.25
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