Quiz Company manages inventory using a JIT system and utilizes backflush costing to account for product costs. The following information is available for July.

Purchased raw materials on account for $600,000

Place all materials purchased into production

Incurred actual direct labor cost of $90,000

Incurred actual overhead cost of $625,000

Applied conversion cost to production of $675,000

Completed all work-in-process

Sold all completed units for $1,530,000

There were not beginning or ending inventories for the month.

Assume that Quiz Company uses backflush costing with two trigger points: the purchase of raw materials and the completion of goods. The entry to record the purchase of materials would include

1. No entry would be required

2. A debit to raw materials and in-process inventory for $600,000

3. A debit to cost of goods sold for $600,000

4. A debit to finished goods inventory for $600,000