Bello, a general manager of a highly automated coffee production plant in Laguna, has provided the following information for transactions that occurred during October. The production plant uses a JIT costing system. Raw materials costing P300,000 were purchased.All materials purchased were requisitioned for production.Direct labor costs of P200,000 were incurred.Actual factory overhead costs amounted to P995,000.Applied conversion costs totaled P1,300,000. This includes the direct labor cost.All units are completed and immediately sold. Compute for the following: __________7. Amount to be debited to the Raw and in Process account in (a)__________8. Amount to be backflushed from RIP to FG account (include materials andconversion cost)__________9. What is the balance of the Cost of Goods Sold Account? No adjustmentsmade for under/over applied overhead__________10. Under / (Over) applied conversion cost__________11. How much is the Cost of Goods Sold after all transactions-adjustmentshave been completed?

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Answered: Bello, a general manager of a highly…

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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Bello, a general manager of a highly automated coffee production plant in Laguna, has provided the following information for transactions that occurred during October. The production plant uses a JIT costing system.

Raw materials costing P300,000 were purchased.
All materials purchased were requisitioned for production.
Direct labor costs of P200,000 were incurred.
Actual factory overhead costs amounted to P995,000.
Applied conversion costs totaled P1,300,000. This includes the direct labor cost.
All units are completed and immediately sold.

Compute for the following:

__________7. Amount to be debited to the Raw and in Process account in (a)

__________8. Amount to be backflushed from RIP to FG account (include materials and

conversion cost)

__________9. What is the balance of the Cost of Goods Sold Account? No adjustments

made for under/over applied overhead

__________10. Under / (Over) applied conversion cost

__________11. How much is the Cost of Goods Sold after all transactions-adjustments

have been completed?

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