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

Total DM	$360,000
Total DL	$140,000
Total OH	$70,000
Total completed and in process	20,000 units
Units sold	19,480
Units in process	100

$500 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	$360,000
Total DL	$140,000
Total OH	$70,000
Total completed and in process	20,000 units
Units sold	19,480
Units in process	100

$500 of raw materials are still in the warehouse at the end of the period. Which journal entry appropriately backflushes costs to inventory accounts?

Debit: COGS $9,860

Credit: Finished Goods $7,560

Credit: WIP $1,800

Credit: RM $500

Debit: Finished Goods $7,560

Debit: WIP $1,800

Debit: RM $500

Credit: COGS $9,860

Debit: COGS $9,860

Credit: Finished Goods $7,560

Credit: RIP $2,300

Debit: Finished Goods $7,560

Debit: RIP $2,300

Credit: COGS $9,860