Backflush costing (Appendix)

LO₅ Rupp Company uses backflush costing to account for its manufacturing costs.

The trigger points for recording inventory transactions are the purchase of materials and the sale of completed products.

Required:

Prepare journal entries, if needed, to account for the following transactions.

a. Purchased raw materials on account, $ 1 50,000.

b. Requisitioned raw materials to production, $ 1 50,000.

c. Distributed direct labor costs, $25,000.

d. Manufacturing overhead costs incurred, $100,000. (Use Various Credits for the credit part of the entry.)

e. Cost of products completed, $275,000.

f. Completed products sold for $400,000, on account