Chen Manufacturing uses backflush costing. Chen has the following information for the most recent month of activity: Required
1. Prepare the journal entries for purchase of materials, conversion costs, the completion of product during the month, the sale of product, and the closing entries for conversion costs and material costs.
2. What is the final amount for cost of goods sold?
3. Under what conditions is backflush costing used in practice?

Question

Chen Manufacturing uses backflush costing. Chen has the following information for the most recent month of activity:  Required
1. Prepare the journal entries for purchase of materials, conversion costs, the completion of product during the month, the sale of product, and the closing entries for conversion costs and material costs.
2. What is the final amount for cost of goods sold?
3. Under what conditions is backflush costing used in practice?

Quizplus · Accepted Answer

The Answer of Chen Manufacturing uses backflush costing. Chen has the following information for the most recent month of activity:  Required
1. Prepare the journal entries for purchase of materials, conversion costs, the completion of product during the month, the sale of product, and the closing entries for conversion costs and material costs.
2. What is the final amount for cost of goods sold?
3. Under what conditions is backflush costing used in practice?

Chen Manufacturing Uses Backflush Costing