BUISENESS MANAGEMENT
INVENTORY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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credited to the Materials and In-Process Inventory Control account
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debited to the Materials and In-Process Inventory Control account
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debited to the Materials Inventory Control account
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credited to the Materials Inventory Control account
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Detailed explanation-1: -Summary. Backflush costing is an accounting method that records costs after a good is sold or a service is completed. The backflush costing method uses a standard cost per unit and multiplies this cost by the number of units produced to determine the expense amount.
Detailed explanation-2: -What is Backflush Accounting? Backflush accounting is when you wait until the manufacture of a product has been completed, and then record all of the related issuances of inventory from stock that were required to create the product.
Detailed explanation-3: -When indirect materials are used, the manufacturing overhead account is debited and the raw material inventory account is credited.
Detailed explanation-4: -In backflush costing, the journal entry to record direct-labor costs incurred would include a Debit to work-in-process Debit to conversion costs 2.