12. Hinghol Company has a cycle time of 3 days, uses a Materials and In process (MIP) account, and charges all conversion costs to Cost of Goods Sold, At the end of month, all inventories are counted , their conversion costs are estimated, and inventory account balances are adjusted. Raw material cost is back-flushed from MIP to Finished Goods. The following information is for June: Beginning balancer of MIP account including P3,000 Conversion cost P29,250 Beginning balance of Finished goods account, including P10,000 of Conversion cost 30,000 Raw materials received on credit 562,500 Ending MIP Inventory per physical count, including P4,500 of CC 32,000 Ending finished goods inventory per physical count, including P8,750 of Conversion 26,250 cost The raw material cost of units completed in June is: Group of answer choices a. P26,250 c. P562,500 b. P561,250 d. P27,500

12. Hinghol Company has a cycle time of 3 days, uses a Materials and In process (MIP) account, and charges all conversion costs to Cost of Goods Sold, At the end of month, all inventories are counted , their conversion costs are estimated, and inventory account balances are adjusted. Raw material cost is back-flushed from MIP to Finished Goods. The following information is for June: Beginning balancer of MIP account including P3,000 Conversion cost P29,250 Beginning balance of Finished goods account, including P10,000 of Conversion cost 30,000 Raw materials received on credit 562,500 Ending MIP Inventory per physical count, including P4,500 of CC 32,000 Ending finished goods inventory per physical count, including P8,750 of Conversion 26,250 cost The raw material cost of units completed in June is: Group of answer choices a. P26,250 c. P562,500 b. P561,250 d. P27,500

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 14PA: Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units....

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Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units. The beginning work in process inventory consisted of $2,000 in materials and $500O in conversion costs before $8.500 of materials and $11,200 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 40% complete with regard to conversion costs. Prepare the journal entry to record the transfer of inventory from the manufacturing department to the finished goods department.
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