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NoFlush is a firm

NoFlush is a firm

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. NoFlush is a firm that produces portable sanitation units. This firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has NO variable overhead. $24,000 $6,000 Total Fixed OH $12,000 Total completed and in process 6,000 units Units in finished goods 150 Units in process The firm has $200 of raw materials at the end of the period. Which of the following are the correct balances of the COGS account before and after inventory costs are backflushed? (Round rates to the nearest cent if necessary.) Total DM Total DL a. b. C. d. Before: $24,000 After: $22,800 Before: $24,000 After: $23,000 Before: $30,000 After: $29,000 Before: $30,000 After: $28,800 100
Transcribed Image Text:1. NoFlush is a firm that produces portable sanitation units. This firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts. The firm has NO variable overhead. $24,000 $6,000 Total Fixed OH $12,000 Total completed and in process 6,000 units Units in finished goods 150 Units in process The firm has $200 of raw materials at the end of the period. Which of the following are the correct balances of the COGS account before and after inventory costs are backflushed? (Round rates to the nearest cent if necessary.) Total DM Total DL a. b. C. d. Before: $24,000 After: $22,800 Before: $24,000 After: $23,000 Before: $30,000 After: $29,000 Before: $30,000 After: $28,800 100
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