A firm uses backflush costing and values inventory using direct costing All actual amounts are equal to budgeted amounts (Note that some of the amounts below are on a per unit basis ) DM per unit $15 DL per unit $5 VOH per unit $6 FOH per unit $4 Total completed and in process 20000 units Units in finished goods 150 Units in process 100 The firm counts raw materials at the end of the period and finds that $1,000 of raw materials are still in the warehouse Which of the following is part of the journal entry to backflushes costs to inventory accounts Group of answer choices Debit RIP $2,500 Debit RIP $1,500 Debit Conversion Costs $1,500 Debit Conversion costs $2,500

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Question: A firm uses backflush costing and values inventory using direct costing . All actual amounts are equal to budgeted amounts. (Note that some of the

A firm uses backflush costing and values inventory using direct costing. All actual amounts are equal to budgeted amounts. (Note that some of the amounts below are on a per unit basis.)

DM per unit	$15
DL per unit	$5
VOH per unit	$6
FOH per unit	$4
Total completed and in process	20000 units
Units in finished goods	150
Units in process	100

The firm counts raw materials at the end of the period and finds that $1,000 of raw materials are still in the warehouse. Which of the following is part of the journal entry to backflushes costs to inventory accounts?

Group of answer choices

Debit: RIP $2,500

Debit: RIP $1,500

Debit: Conversion Costs $1,500

Debit: Conversion costs $2,500

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