Dutch Oven Is a Bakery Company

question 94

Essay

Dutch Oven is a bakery company.All processing is in batches of 6 dozen.For March,there were no beginning inventories.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 assuming that 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.Material price variances are recorded at the time of purchase then closed to cost of goods sold;all other variances are recorded at the completion of finished goods trigger point as a direct charge,or credit to Cost of Goods Sold.

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Definitions:

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Lockbox System

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