Koala Corp. uses Raw and In Process Inventory account and expensed all conversion cost to the cost of goods sold account. 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 cost is backflushed from RIPI to Finished Goods inventory. The following information is available for the month of June 2021:
Koala Corp. uses Raw and In Process Inventory account and expensed all conversion cost to the cost of goods sold account. 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 cost is backflushed from RIPI to Finished Goods inventory. The following information is available for the month of June 2021:
Raw and In Process Inventory account (RIPI), including 1,500 of conversion cost totaled P 35,000
Raw materials received on credit is P 360,000
Ending RIPI account per physical count, including P 1,200 conversion cost is P 39,000 What is the amount of materials used to be backflushed from RIPI to Finished Goods Inventory?
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