Outcrapping is a firm that produces portable sanitation units. This firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equa to budgeted amounts. The firm has NO variable overhead. Total DM $14,000 Total DL $4,000 Total Fixed OH $5,600 Total completed and in process 7,000 units Units in finished goods 75 Units in process 50 The firm has $100 of raw materials at the end of the period. Which of the following ard the correct balances of the COGS account before and after inventory costs are backflushed? (Round rates to the nearest cent if necessary.)
Outcrapping is a firm that produces portable sanitation units. This firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equa to budgeted amounts. The firm has NO variable overhead. Total DM $14,000 Total DL $4,000 Total Fixed OH $5,600 Total completed and in process 7,000 units Units in finished goods 75 Units in process 50 The firm has $100 of raw materials at the end of the period. Which of the following ard the correct balances of the COGS account before and after inventory costs are backflushed? (Round rates to the nearest cent if necessary.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Outcrapping 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.
Total DM
$14,000
Total DL
$4,000
Total Fixed OH
$5,600
Total completed and in process 7,000 units
Units in finished goods
75
Units in process
50
The firm has $100 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.)
Before: $18,000
After: $17,678.25
Before: $14,000
After: $13,650
Before: $14,000
After: $13,750
O Before: $18,000
After: $17,578.25
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