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A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting.   At the beginning of January, the RIP account has a balance of $0. On January 10, the firm purchases 1,000 lbs of raw materials worth $10,000. At the end of the month, 10 lbs of raw materials (worth $100) remain unused. 50 units were in process ($6 material cost per unit)   If you searched for the RIP account in the firm's cost accounting records on January 15, what balance would that account show?   Group of answer choices   $10,000   $100   $0   $400

A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting.   At the beginning of January, the RIP account has a balance of $0. On January 10, the firm purchases 1,000 lbs of raw materials worth $10,000. At the end of the month, 10 lbs of raw materials (worth $100) remain unused. 50 units were in process ($6 material cost per unit)   If you searched for the RIP account in the firm's cost accounting records on January 15, what balance would that account show?   Group of answer choices   $10,000   $100   $0   $400

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter2: Accounting For Materials
Section: Chapter Questions
Problem 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...
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A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting.

 

At the beginning of January, the RIP account has a balance of $0. On January 10, the firm purchases 1,000 lbs of raw materials worth $10,000. At the end of the month, 10 lbs of raw materials (worth $100) remain unused. 50 units were in process ($6 material cost per unit)

 

If you searched for the RIP account in the firm's cost accounting records on January 15, what balance would that account show?

 

Group of answer choices

 

$10,000

 

$100

 

$0

 

$400

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