Dutch Oven Is a Bakery Company

question 28

Essay

Dutch Oven is a bakery company. All processing is in batches of 6 dozen. For March, there were no beginning inventories. Ending direct materials totalled $1,500. Conversion Costs and Direct Materials are the only baking cost accounts. Direct Materials are purchased under a just-in-time system. The company uses backflush costing with three trigger points at purchase of raw materials, completion of finished goods, and sale of finished goods. Additional information for the month is as follows:
Required:
Record all journal entries for the monthly activities related to the above transactions if backflush costing is used. The company uses a standard costing system for recording the purchase and use of direct materials and the recording of conversion costs.

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