A firm uses backflush costing on a direct costing basis. It incurs the following costs this period (the firm has NO fixed overhead costs). Note that these cost figures are rates per unit. DM rate: $20 per unit DL rate: $20 per unit Variable overhead rate: $10 per unit The firm's total units (completed and in process) is 1,962. The firm has 18 units in process and 65 unsolc units in finished goods. The firm has $713 of unused raw materials left over at the end of the period. What is the balance of the Cost of Goods Sold account AFTER the firm backflushes costs to inventory accounts
A firm uses backflush costing on a direct costing basis. It incurs the following costs this period (the firm has NO fixed overhead costs). Note that these cost figures are rates per unit. DM rate: $20 per unit DL rate: $20 per unit Variable overhead rate: $10 per unit The firm's total units (completed and in process) is 1,962. The firm has 18 units in process and 65 unsolc units in finished goods. The firm has $713 of unused raw materials left over at the end of the period. What is the balance of the Cost of Goods Sold account AFTER the firm backflushes costs to inventory accounts
Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Ripley, Inc., costs products using a normal costing system. The following data are available for...
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![A firm uses backflush costing on a direct costing
basis. It incurs the following costs this period (the
firm has NO fixed overhead costs). Note that these
cost figures are rates per unit.
DM rate: $20 per unit
DL rate: $20 per unit
Variable overhead rate: $10 per unit
The firm's total units (completed and in process) is
1,962. The firm has 18 units in process and 65 unsold
units in finished goods. The firm has $713 of unused
raw materials left over at the end of the period.
What is the balance of the Cost of Goods Sold
account AFTER the firm backflushes costs to
inventory accounts](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd718f2f5-2241-4254-9cc1-fbd4447017bf%2F0acb5c8d-62d4-447e-818c-d678589d292b%2F06hg67l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A firm uses backflush costing on a direct costing
basis. It incurs the following costs this period (the
firm has NO fixed overhead costs). Note that these
cost figures are rates per unit.
DM rate: $20 per unit
DL rate: $20 per unit
Variable overhead rate: $10 per unit
The firm's total units (completed and in process) is
1,962. The firm has 18 units in process and 65 unsold
units in finished goods. The firm has $713 of unused
raw materials left over at the end of the period.
What is the balance of the Cost of Goods Sold
account AFTER the firm backflushes costs to
inventory accounts
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