1. Art Crafts manufacturing uses backflush costing to account for an electric meter it makes. During August2015, the firm produced 16,000 meters of which it sold 15,800. The standard cost for each meter is:Direct materialsP20Conversion costs44P64Assume that the firm had no inventory on August 1. The following events took place in August:1. Purchased P320,000 of direct materials2. Incurred P708,000 of conversion costs3. Applied P704,000 of conversion costs to Raw and In process Inventory4. Finished 16,000 meters5. Sold 15,800 meters for P100 eachCompute the amount to be backflushed from RIP to finished goods:a. P320,000b. P704,000c. P1,024,000d. P1,028,000Page 1 of 62. Using the same information in No.1, determine the August 31 (ending balance) of Finished goods account:а. РОb. P12,850c. P12,962d. P12,800

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Description: 1. Art Crafts manufacturing uses backflush costing to account for an electric meter it makes. During August2015, the firm produced 16,000 meters of which it sold 15,800. The standard cost for each meter is:Direct materialsP20Conversion costs44P64Ass

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1. Art Crafts manufacturing uses backflush costing to account for an electric meter it makes. During August 2015, the firm produced 16,000 meters of which it sold 15,800. The standard cost for each meter is: Direct materials Conversion costs P20 44 P64 Assume that the firm had no inventory on August 1. The following events took place in August: 1. Purchased P320,000 of direct materials Incurred P708,000 of conversion costs 3. Applied P704,000 of conversion costs to Raw and In process Inventory 4. Finished 16,000 meters 5. Sold 15,800 meters for P100 each Compute the amount to be backflushed from RIP to finished goods: a. P320,000 b. P704,000 c. P1,024,000 d. P1,028,000 Page 1 of 6 2. Using the same information in No.1, determine the August 31 (ending balance) of Finished goods account: a. PO b. P12,850 c. P12,962 d. P12,800

1. Art Crafts manufacturing uses backflush costing to account for an electric meter it makes. During August 2015, the firm produced 16,000 meters of which it sold 15,800. The standard cost for each meter is: Direct materials Conversion costs P20 44 P64 Assume that the firm had no inventory on August 1. The following events took place in August: 1. Purchased P320,000 of direct materials Incurred P708,000 of conversion costs 3. Applied P704,000 of conversion costs to Raw and In process Inventory 4. Finished 16,000 meters 5. Sold 15,800 meters for P100 each Compute the amount to be backflushed from RIP to finished goods: a. P320,000 b. P704,000 c. P1,024,000 d. P1,028,000 Page 1 of 6 2. Using the same information in No.1, determine the August 31 (ending balance) of Finished goods account: a. PO b. P12,850 c. P12,962 d. P12,800

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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