BACKFLUSH COSTING Foster Company has implemented a JIT system and is considering the use of backflush costing. Foster had the following transactions for the first quarter of the current fiscal year. (Conversion cost variances are recognized quarterly.) 1. Purchased raw materials on account for $400,000. 2. Placed all materials received into production. 3. Incurred actual direct labor costs of $60,000. 4. Incurred actual overhead costs of $400,000. 5. Applied conversion costs of $470,000. 6. Completed all work for the month. 7. Sold all completed work. 8. Computed the difference between actual and applied costs. Required: Prepare journal entries for Variations 2 and 4 of backflush costing.