GHY Company has a cycle time of 2 days. It uses a raw materials and in process account and charg all conversion costs to cost of goods sold. At the end of each month, all inventories are counte conversion costs components are estimated, and inventory account balances are adjusted. Ra material cost is backflushed from the raw materials and in process account to the finished goc account. The following information is provided for the month of December: Beginning Balance of RIP account, including P5,000 conversion cost Beginning Balance of finished goods account, including P8,000 conversion cost Raw materials received on credit Direct labor cost 15,0 20.0 500,0 350,0 Factory overhead applied Ending RIP inventory per physical count, including P9,000 conversion col Ending finished goods inventory per physical count, including P4,000 conversion cost 450,0 30,0 11,0 a. 494,000 b. 800,000 c. 1,285,000 d. 1,294,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
Question 2: How much is the conversion cost
included cost of goods sold in June? *
GHY Company has a cycle time of 2 days. It uses a raw materials and in process account and charges
all conversion costs to cost of goods sold. At the end of each month, all inventories are counted,
conversion costs components are estimated, and inventory account balances are adjusted. Raw
material cost is backflushed from the raw materials and in process account to the finished goods
account. The following information is provided for the month of December:
15,000
Beginning Balance of RIP account, including P5,000 conversion cost
Beginning Balance of finished goods account, including P8,000 conversion cost
Raw materials received on credit
Direct labor cost
20.000
500,000
350,000
450,000
30,000
Factory overhead applied
Ending RIP inventory per physical count, including P9,000 conversion co
Ending finished goods inventory per physical count, including P4,000 conversion cost
11,000
a. 494,000
b. 800,000
c. 1,285,000
d. 1,294,000
Transcribed Image Text:Question 2: How much is the conversion cost included cost of goods sold in June? * GHY Company has a cycle time of 2 days. It uses a raw materials and in process account and charges all conversion costs to cost of goods sold. At the end of each month, all inventories are counted, conversion costs components are estimated, and inventory account balances are adjusted. Raw material cost is backflushed from the raw materials and in process account to the finished goods account. The following information is provided for the month of December: 15,000 Beginning Balance of RIP account, including P5,000 conversion cost Beginning Balance of finished goods account, including P8,000 conversion cost Raw materials received on credit Direct labor cost 20.000 500,000 350,000 450,000 30,000 Factory overhead applied Ending RIP inventory per physical count, including P9,000 conversion co Ending finished goods inventory per physical count, including P4,000 conversion cost 11,000 a. 494,000 b. 800,000 c. 1,285,000 d. 1,294,000
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education