Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 20 - Inventory Management, Just-in-Time, and Simplified Costing Methods - Assignment Material - Questions - Page 795: 20-13

Answer

Sequential tracking in inventory costing involves recording journal entries in the same order as actual purchases and production progress, typically at multiple trigger points. Backflush costing, on the other hand, omits some journal entries, leading to fewer trigger points. When entries are omitted in backflush costing, subsequent entries use normal or standard costs to retroactively account for the costs not initially recorded.

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