Problem 1 Stillwater Manufacturing has a cycle time of less than a day, us= Process (RIP) account and expenses all conversion costs to Cost At the end of each month, all inventories are counted; their components are estimated and inventory account balance accordingly. Raw material is backflushed from RIP to Finish- 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
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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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
42,600
45,000
356,000
22,500
16,000
P
Required: Prepare all journal entries that involve the RIP account and/or finished
goods account.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe90d286a-662c-4e6a-b9f5-c5777bb09600%2F84ceb02e-2710-4380-a1ad-971200009efd%2F9wqi1dj_processed.png&w=3840&q=75)
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