(Solved): Backflush versus Traditional Costing: Variation 1 Potter Company has installed a JIT purchating and ...

Backflush versus Traditional Costing: Variation 1 Potter Company has installed a JIT purchating and manufacturing system and is using backflush accounting for its cost flows. It currently uses a two-trigger äpproach. with the purchase of materiais as the first triggerpoint and the completion of goods as the second trigger point. During the month of June, Potter had the following transactions: ¿ \( \$ 42,000 \) labor plus \( \$ 231,000 \) overhead. There were no begifning or ending inventorins. All goods produced were sold with a 50 percent markup. Any variance is ciosed to Cost of Goods 50 id. (Varlances are recognited monthiyi) Required: 1. Prepare the joumal entries thst would have been mede using a tradtianal accounting agproach for cost flows. Make your entries in the following order: (a) purchase of raw materials, (b) istuence of materials to production, (c) incurrence of direct labor cost, (d) incurrence of cverhead cost, (e) application of overhead to production, (f) completion of goods, \( (9) \) cost of sales, \( (h) \) revenue from sales, and (i) recognition of the variance between applied and actual production costs.r 2. Prepare the joumal entries for the month using backflush costing] For a compound transaction, if an amount box does not require an entry, leave it blank. Prepare your entries in the following order: (a) purchase of raw materials, (b) incurrence of direct labor and overhesd costs, (c) completion of goods, (d) cost of sales, (o) sales revenue, and \( (t) \) recognition of the variance between applied and actual production costs. 2. Prepare the journal entries for the month using backfiusit costing. For a compound transaction, if an amount box does not require an entry, leave it blank. Prepare your entries in the following order: (a) purchase of raw matenials, (b) incurrence of direct labor and overtheod costs, (c) completion of goods, (d) cost of sales,