Problem 2 The Magnolia Corporation has a cycle time of 1.5 days, uses a raw and in process 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 materials cost is backflushed from raw and in process account to finished goods. The following information is for July. Beginning balance of RIP account, including P14,040 of conversion cost Beginning balance of finished goods account, including P14,400 of conversion cost Raw materials received on credit Ending RIP inventory per physical count, including P15,360 conversion cost estimate Ending FG inventory per physical count, including P11,400 conversion cost estimate Conversion cost (direct labor- P210,000; factory overhead - P189,000) 23,400 24,000 444,000 25,600 19,000 | Required: Journal entries to record the given transactions
Problem 2 The Magnolia Corporation has a cycle time of 1.5 days, uses a raw and in process 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 materials cost is backflushed from raw and in process account to finished goods. The following information is for July. Beginning balance of RIP account, including P14,040 of conversion cost Beginning balance of finished goods account, including P14,400 of conversion cost Raw materials received on credit Ending RIP inventory per physical count, including P15,360 conversion cost estimate Ending FG inventory per physical count, including P11,400 conversion cost estimate Conversion cost (direct labor- P210,000; factory overhead - P189,000) 23,400 24,000 444,000 25,600 19,000 | Required: Journal entries to record the given transactions
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 2
Transcribed Image Text:Problem 2
The Magnolia Corporation has a cycle time of 1.5 days, uses a raw and in process
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 materials cost is
backflushed from raw and in process account to finished goods. The following
information is for July.
Beginning balance of RIP account, including
P14,040 of conversion cost
Beginning balance of finished goods account,
including P14,400 of conversion cost
Raw materials received on credit
Ending RIP inventory per physical count, including
P15,360 conversion cost estimate
Ending FG inventory per physical count, including
P11,400 conversion cost estimate
Conversion cost (direct labor- P210,000; factory overhead - P189,000)
23,400
24,000
444,000
25,600
19,000
|
Required: Journal entries to record the given transactions
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