ABC company has a cycle time of 1.5 days, uses a Raw and InProcess (RIP) account, and charges all conversion costs to Costof Goods Sold. At the end of each month, all inventories arecounted, their conversion cost components are estimated, andinventory account balances are adjusted. Raw material cost isbackflushed from RIP to Finished Goods. The followinginformation is for May:Beginning balance of RIP account, including $600 of conversion cost5,500Beginning balance of finished goods account,including $2,000 of conversion cost6,000Raw materials received on credit173,000Ending RIP inventory per physical count,including$850 conversion cost estimateEnding finished goods inventory per physicalcount, including $1,550conversion cost estimate6,2004,900Prepare all the journal entries that involve the RIP accountand/or the finished goods account.

Name: ABC company has a cycle time of 1.5 days, uses a Raw and InProcess (R
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Description: ABC company has a cycle time of 1.5 days, uses a Raw and InProcess (RIP) account, and charges all conversion costs to Costof Goods Sold. At the end of each month, all inventories arecounted, their conversion cost components are estimated, andinvento

Journal is the recording of financial transactions using dual entity concept. It is the first step…

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ABC 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 $600 of conversion cost Beginning balance of finished goods account, including $2,000 of conversion cost 5,500 6,000 Raw materials received on credit 173,000 Ending RIP inventory per physical count, including$850 conversion cost estimate Ending finished goods inventory per physical count, including $1,550conversion cost estimate 6,200 4,900 Prepare all the journal entries that involve the RIP account and/or the finished goods account.

ABC 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 $600 of conversion cost Beginning balance of finished goods account, including $2,000 of conversion cost 5,500 6,000 Raw materials received on credit 173,000 Ending RIP inventory per physical count, including$850 conversion cost estimate Ending finished goods inventory per physical count, including $1,550conversion cost estimate 6,200 4,900 Prepare all the journal entries that involve the RIP account and/or the finished goods account.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 10PA: Production information shows these costs and units for the smoothing department in August. All...

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