Problem 4: Journal Entries (Traditional vs. Backflush) LPU Corp. has the adopted JIT system. The following data pertains to January 2020: Production for the month Sales for the month (P20 per unit) Standard Production Unit Costs: Direct Materials Conversion Costs 24,000 units 23,700 units P4 P8 Assume that the quantity of materials purchased and used were equal and there were no costs or usage variance for the month. Assume also that all units started were completed. Required: Prepare the following journal entries if the company uses: A. Traditional costing B. Backflush costing (assuming the company initially charges all costs to COGS and then uses backflush costing to assign cost to inventories). 1. Purchase of materials 2. Incurrence of conversion costs 3. Completion of production 4. Sale of the month