Cove Co. has a cycle time of 3 days, uses a raw and in process (RIP) account, and charges all conversion cost to cost of goods sold. At the end of each month, all inventories are counted, their conversation costs components are estimated, and inventory account balances are adjusted. Raw materials cost is BACKFLUSHED from RIP to Finished goods. The following information is for June. Beginning balance of RIP account including P 20,560 of conversion cost P 42,600 Beginning balance of finished goods account, including P 22,000 of conversion cost 45,000 Raw materials received on credit 356,000 Direct labor cost, P 350,000 factory overhead P 196,150 Ending RIP inventory per physical count, including P 15,500 conversion cost 22,500 Ending finished goods inventory per count, including P 11,600 conversion cost 16,000 Which of the following entires will be included? a. debit rip 5060and cogs 5340; credit fg 10400 b. debit fg 10400; credit rip 5060and cogs 5340 c. debit cogs 15640; credit rip 5060 and cogs 10400 d. debit rip 5060 and cogs 10400; credit cogs 15640
Cove Co. has a cycle time of 3 days, uses a raw and in process (RIP) account, and charges all conversion cost to cost of goods sold. At the end of each month, all inventories are counted, their conversation costs components are estimated, and inventory account balances are adjusted. Raw materials cost is BACKFLUSHED from RIP to Finished goods.
The following information is for June.
Beginning balance of RIP account including P 20,560 of conversion cost P 42,600
Beginning balance of finished goods account, including P 22,000 of conversion cost 45,000
Raw materials received on credit 356,000
Direct labor cost, P 350,000
factory overhead P 196,150
Ending RIP inventory per physical count, including P 15,500 conversion cost 22,500
Ending finished goods inventory per count, including P 11,600 conversion cost 16,000
Which of the following entires will be included?
a. debit rip 5060and cogs 5340; credit fg 10400
b. debit fg 10400; credit rip 5060and cogs 5340
c. debit cogs 15640; credit rip 5060 and cogs 10400
d. debit rip 5060 and cogs 10400; credit cogs 15640
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