A firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts.

Total DM	$100,000
Total DL	$90,000
Total OH	$70,000
Total completed and in process	20,000 units
Units sold	19,480
Units in process	100

$150 of raw materials are still in the warehouse at the end of the period. Which journal entry appropriately backflushes costs to inventory accounts?

A firm uses backflush costing and values inventory using throughput accounting. All actual amounts are equal to budgeted amounts.

Total DM	$100,000
Total DL	$90,000
Total OH	$70,000
Total completed and in process	20,000 units
Units sold	19,480
Units in process	100

$150 of raw materials are still in the warehouse at the end of the period. Which journal entry appropriately backflushes costs to inventory accounts?

1. Debit: Finished Goods $2,100

Debit: WIP $500

Debit: RM $150

Credit: COGS $2,750

2. Debit: Finished Goods $2,100

Debit: RIP $650

Credit: COGS $2,750

3.Debit: COGS $2,750

Credit: Finished Goods $2,100

Credit: RIP $625

4. Debit: COGS $2,750

Credit: Finished Goods $2,100

Credit: WIP $500

Credit: RM $150