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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
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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Chapter 6 Just in Time and Backflush Accounting

Problem 1

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 estimated and inventory account balances are adjusted 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 P 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.
Transcribed Image Text: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 estimated and inventory account balances are adjusted 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 P 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.
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