The RYX Manufacturing Company has a cycle time of 2.0 days, uses an in process (RIP) 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 materials cost is backflushed from RIP to Finished Goods. The following information is for May: Beginning balance of RIP account, including P7,200 of conversion costs P11,400 Beginning balance of FG account, including P8,800 of conversion costs 16,000 Raw materials purchased on credit 246,000 Ending RIP inventory account, including P15,700 of conversion cost 21,300 Ending FG inventory account, including P13,100 of conversion cost 19,800 Conversion costs in June are P98,000 for direct labor and P125,000 for overhead.
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.
The RYX Manufacturing Company has a cycle time of 2.0 days, uses an in process (RIP) 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 materials cost is backflushed from RIP to Finished Goods. The following information is for May:
Beginning balance of RIP account, including P7,200 of conversion costs P11,400
Beginning balance of FG account, including P8,800 of conversion costs 16,000
Raw materials purchased on credit 246,000
Ending RIP inventory account, including P15,700 of conversion cost 21,300
Ending FG inventory account, including P13,100 of conversion cost 19,800
Conversion costs in June are P98,000 for direct labor and P125,000 for
The amount of materials backflushed from RIP to Finished Goods is _______________.
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