Akabanebashi uses backflush costing to account for its manufacturing costs. The trigger points for recording of inventories are the purchase of materials , the completion of products and sale finished goods. During the month of September 2015 , the following transactions occured: 1. Purchased raw materials on account 92,000 2. Requisitioned raw materials to production 92,000 3. Direct labor cost incurred 40,000 4. Manufacturing overhead costs 60,000 5. Cost of goods manufactured 192,000 5. Completed products sold at 50% markup on cost. Required: Prepare the journal entries to record above transactions

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Akabanebashi uses backflush costing to account for its manufacturing costs. The trigger points for recording of inventories are the purchase of materials , the completion of products and sale finished goods. During the month of September 2015 , the following transactions occured:

1. Purchased raw materials on account 92,000

2. Requisitioned raw materials to production 92,000

3. Direct labor cost incurred 40,000

4. Manufacturing overhead costs 60,000

5. Cost of goods manufactured 192,000

5. Completed products sold at 50% markup on cost.

Required:

Prepare the journal entries to record above transactions

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