The Sinturon ni Jeff Company has a cycle time of 1.5 days, uses a Raw and In Process (RIP) account, and charges all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted, their conversion cost components are estimated, and inventory account balances are adjusted. Raw material cost is backflushed from RIP to Finished Goods. The following information is for May: Beginning balance of RIP account, including P600 of conversion cost P 5,500
The Sinturon ni Jeff Company has a cycle time of 1.5 days, uses a Raw and In Process (RIP) account, and charges all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted, their conversion cost components are estimated, and inventory account balances are adjusted. Raw material cost is backflushed from RIP to Finished Goods. The following information is for May:
Beginning balance of RIP account, including P600 of conversion cost P 5,500
Beginning balance of finished goods account, including P2,000 of
conversion cost 6,000
Raw materials received on credit 173,000
Ending RIP inventory per physical count, including P850 conversion
cost estimate 6,200
Ending finished goods inventory per physical count, including P1,550
conversion cost estimate 4,900
How much materials will be backflushed from RIP account to Finished Goods account?
Step by step
Solved in 2 steps with 1 images
