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B. G. Bello, a general manager of a highly automated coffee production plant in Laguna, has provided the following information for transactions that occurred during October. The production plant uses a JIT costing system. a. Raw materials costing P300,000 were purchased. b. All materials purchased were requisitioned for production. c. Direct labor costs of P200,000 were incurred. d. Actual factory overhead costs amounted to P995,000. e. Applied conversion costs totaled P1,300,000. This includes the direct labor cost. f. All units are completed and immediately sold. Compute for the following: _7. Amount to be debited to the Raw and in Process account in (a) _8. Amount to be backflushed from RIP to FG account (include materials and conversion cost) _9. What is the balance of the Cost of Goods Sold Account? No adjustments made for under/over applied overhead

B. G. Bello, a general manager of a highly automated coffee production plant in Laguna, has provided the following information for transactions that occurred during October. The production plant uses a JIT costing system. a. Raw materials costing P300,000 were purchased. b. All materials purchased were requisitioned for production. c. Direct labor costs of P200,000 were incurred. d. Actual factory overhead costs amounted to P995,000. e. Applied conversion costs totaled P1,300,000. This includes the direct labor cost. f. All units are completed and immediately sold. Compute for the following: _7. Amount to be debited to the Raw and in Process account in (a) _8. Amount to be backflushed from RIP to FG account (include materials and conversion cost) _9. What is the balance of the Cost of Goods Sold Account? No adjustments made for under/over applied overhead

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Bello, a general manager of a highly automated coffee production plant in Laguna, has provided the following information for transactions that occurred during October. The production plant uses a JIT costing system.

B. G. Bello, a general manager of a highly automated coffee production plant in Laguna, has provided the following information for transactions that occurred during October. The production plant uses a JIT costing system. a. Raw materials costing P300,000 were purchased. b. All materials purchased were requisitioned for production. c. Direct labor costs of P200,000 were incurred. d. Actual factory overhead costs amounted to P995,000. e. Applied conversion costs totaled P1,300,000. This includes the direct labor cost. f. All units are completed and immediately sold. Compute for the following: _7. Amount to be debited to the Raw and in Process account in (a) _8. Amount to be backflushed from RIP to FG account (include materials and conversion cost) 9. What is the balance of the Cost of Goods Sold Account? No adjustments made for under/over applied overhead _10. Under / (Over) applied conversion cost _11. How much is the Cost of Goods Sold after all transactions-adjustments have been completed?
Transcribed Image Text:B. G. Bello, a general manager of a highly automated coffee production plant in Laguna, has provided the following information for transactions that occurred during October. The production plant uses a JIT costing system. a. Raw materials costing P300,000 were purchased. b. All materials purchased were requisitioned for production. c. Direct labor costs of P200,000 were incurred. d. Actual factory overhead costs amounted to P995,000. e. Applied conversion costs totaled P1,300,000. This includes the direct labor cost. f. All units are completed and immediately sold. Compute for the following: _7. Amount to be debited to the Raw and in Process account in (a) _8. Amount to be backflushed from RIP to FG account (include materials and conversion cost) 9. What is the balance of the Cost of Goods Sold Account? No adjustments made for under/over applied overhead _10. Under / (Over) applied conversion cost _11. How much is the Cost of Goods Sold after all transactions-adjustments have been completed?
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