Chapter 6 Just in Time and Backflush Accounting 171 Problems Problem 1 Stillwater Manufacturing has a cycle time of less than a day, uses a Raw and In Process (RIP) account and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion cost components are accordingly. Raw material is backflushed from RIP to Finished Goods. The following information is for the month of August. RIP beginning, including P 25,560 of conversion cost FG beginning, including P 27,000 of conversion cost Raw materials purchased on credit RIP end, including P 13,500 of conversion cost estimate FG end, including P 9,600 of conversion cost estimate Direct labor - P 350,000; factory overhead - P 196,150,000 estimated and inventory account balances are adjusted 42,600 45,000 356,000 22,500 16,000 Required: Prepare all journal entries that involve the RIP account and/or finished goods account.

Chapter 6 Just in Time and Backflush Accounting 171 Problems Problem 1 Stillwater Manufacturing has a cycle time of less than a day, uses a Raw and In Process (RIP) account and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion cost components are accordingly. Raw material is backflushed from RIP to Finished Goods. The following information is for the month of August. RIP beginning, including P 25,560 of conversion cost FG beginning, including P 27,000 of conversion cost Raw materials purchased on credit RIP end, including P 13,500 of conversion cost estimate FG end, including P 9,600 of conversion cost estimate Direct labor - P 350,000; factory overhead - P 196,150,000 estimated and inventory account balances are adjusted 42,600 45,000 356,000 22,500 16,000 Required: Prepare all journal entries that involve the RIP account and/or finished goods account.

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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