Froblem 3 The Smart Manufacturing Company has a cycle time of 3.0 days, uses a Raw and In Process account and charges 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. Raw material cost is backflushed from RIP, to Finished Goods. The following information is for the month of June. Materials purchased on credit RIP beginning, including P4,400 of conversion costs FG beginning, including P10,800 of conversion costs RIP end, including P 7,800 of conversion costs FG end, including P 6,500 of conversion costs Conversion cost - P 80,000 direct labor and P100,000 overhead Requirements 1. Compute for the amount of materials backflushed from RIP to Finished Goods 2. Compute for amount of materials backflushed from Finished Goods to CofGS. 3. Journal entries to record the above transactions 146,000 15,000 36,000 24,000 18,000 P.
Froblem 3 The Smart Manufacturing Company has a cycle time of 3.0 days, uses a Raw and In Process account and charges 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. Raw material cost is backflushed from RIP, to Finished Goods. The following information is for the month of June. Materials purchased on credit RIP beginning, including P4,400 of conversion costs FG beginning, including P10,800 of conversion costs RIP end, including P 7,800 of conversion costs FG end, including P 6,500 of conversion costs Conversion cost - P 80,000 direct labor and P100,000 overhead Requirements 1. Compute for the amount of materials backflushed from RIP to Finished Goods 2. Compute for amount of materials backflushed from Finished Goods to CofGS. 3. Journal entries to record the above transactions 146,000 15,000 36,000 24,000 18,000 P.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Problem 3
Transcribed Image Text:172
Cost Accounting
Froblem 3
The Smart Manufacturing Company has a cycle time of 3.0 days, uses a Raw and
In Process account and charges 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. Raw material cost is
backflushed from RIP to Finished Goods. The following information is for the
month of June.
Materials purchased on credit
RIP beginning, including P4,400 of conversion costs
FG beginning, including P10,800 of conversion costs
RIP end, including P 7,800 of conversion costs
FG end, including P 6,500 of conversion costs
Conversion cost - P 80,000 direct labor and P100,000 overhead
Requirements
1. Compute for the amount of materials backflushed from RIP to Finished Goods
2. Compute for amount of materials backflushed from Finished Goods to CofGS.
3. Journal entries to record the above transactions
P 146,000
15,000
36,000
24,000
18,000
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