Bershka Manufacturing Company uses the Materials and in Process (MIP)account. At the end of each month, all inventories are counted, their conversioncosts components are estimated and inventory account balances are adjustedaccordingly. Raw Materials are backflushed from MIP account to finished goodsaccount then ultimately to cost of sales. The following data are available for themonth of June.DE COBR28,8004,080,000MIP, Jan. 1Conversion cost debited to various accountscelseP251,400ont ja1Debited to MIP account during the 6-monthsperiodConversion costs appliedMIP account, Dec 3131,800232,2001. The amount of materials backflushed RIP to finished goods amounted toEnisirsibridd-oro at violnsvnt

Backflush costing is an type of an accounting method. In which we records costs only after a good is…

Answered: 1. The amount of materials backflushed…

Business

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1. The amount of materials backflushed RIP to finished goods amounted to

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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Question

Bershka Manufacturing Company uses the Materials and in Process (MIP)
account. At the end of each month, all inventories are counted, their conversion
costs components are estimated and inventory account balances are adjusted
accordingly. Raw Materials are backflushed from MIP account to finished goods
account then ultimately to cost of sales. The following data are available for the
month of June.
DE COBR
28,800
4,080,000
MIP, Jan. 1
Conversion cost debited to various accounts
celse
P251,400
ont ja1
Debited to MIP account during the 6-months
period
Conversion costs applied
MIP account, Dec 31
31,800
232,200
1. The amount of materials backflushed RIP to finished goods amounted to
Enisirsi
bridd-oro at violnsvnt

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