Dolls "R" Us manufactures children's plastic dolls. For January there were no beginning inventories of direct materials, and no beginning or ending work-in-process. Conversion costs and direct materials are the only manufacturing cost accounts. Journal entries are recorded at three trigger points using backflush costing: purchase of direct materials, completion of finished goods, and sale of product. Since February is the first month of the fiscal year, all actual costs are as budgeted. Additional information for the month is as follows:
Required:
Record all journal entries for the monthly activities related to the above transactions based on backflush costing.

Question

Dolls "R" Us manufactures children's plastic dolls. For January there were no beginning inventories of direct materials, and no beginning or ending work-in-process. Conversion costs and direct materials are the only manufacturing cost accounts. Journal entries are recorded at three trigger points using backflush costing: purchase of direct materials, completion of finished goods, and sale of product. Since February is the first month of the fiscal year, all actual costs are as budgeted. Additional information for the month is as follows:
  Required:
Record all journal entries for the monthly activities related to the above transactions based on backflush costing.

Quizplus · Accepted Answer

The Answer of Dolls "R" Us manufactures children's plastic dolls. For January there were no beginning inventories of direct materials, and no beginning or ending work-in-process. Conversion costs and direct materials are the only manufacturing cost accounts. Journal entries are recorded at three trigger points using backflush costing: purchase of direct materials, completion of finished goods, and sale of product. Since February is the first month of the fiscal year, all actual costs are as budgeted. Additional information for the month is as follows:
  Required:
Record all journal entries for the monthly activities related to the above transactions based on backflush costing.

Dolls "R" Us Manufactures Children's Plastic Dolls