Berry Company has a cycle time of 2 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of August: RIP beginning, including P17,040 of conversion cost, P26,400; FG beginning, including P17,400 of conversion cost; P27,000; Raw materials purchased on account, P447,000; RIP end, including P18,360 of conversion cost, P28,600; FG end, including P14,400 of conversion cost, P22,000. Direct labor P213,000; Factory overhead P192,000. Which of the following entries is incorrect? Debit COGS 405,000; credit Accrued Payroll 213,000 and FOH Control 192,000. Debit FG 3,000; credit RIP 1,320 and COGS 1,680. Debit RIP 447,000; credit Accounts Payable P447,000. Debit FG 446,120; credit RIP 446,120.
Berry Company has a cycle time of 2 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of August: RIP beginning, including P17,040 of conversion cost, P26,400; FG beginning, including P17,400 of conversion cost; P27,000; Raw materials purchased on account, P447,000; RIP end, including P18,360 of conversion cost, P28,600; FG end, including P14,400 of conversion cost, P22,000. Direct labor P213,000; Factory overhead P192,000. Which of the following entries is incorrect?
Debit COGS 405,000; credit Accrued Payroll 213,000 and FOH Control 192,000.
Debit FG 3,000; credit RIP 1,320 and COGS 1,680.
Debit RIP 447,000; credit Accounts Payable P447,000.
Debit FG 446,120; credit RIP 446,120.
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