Backflush Costing
Hepworth Company has implemented a JIT system and is considering
the use of backflush costing. Hepworth had the following
transactions for the current fiscal year:
Purchased raw materials on account for $370,000.
Placed all materials received into production.
Incurred actual direct labor costs of $55,500.
Incurred actual overhead costs of $385,800.
Applied conversion costs of $417,400.
Completed all work for the month.
Sold all completed work.
Computed the difference between actual and applied costs.
prepare the journal entries...