What is the amount of materials backflushed from RIP to FG?
Michael Company has a cycle time of 4 days, uses Raw and In Process account (RIP) and expenses all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted; their conversion components are estimated and inventory account balances are adjusted accordingly. Raw materials is backflushed from RIP to Finished Goods. The following information is for the month of October: RIP beginning, including $10,000 of conversion cost, $35,000; FG beginning, including $6,800 of conversion cost; $30,000; Raw materials purchased on account, $225,000; RIP end, including $13,700 of conversion cost, $23,500; FG end, including $11,100 of conversion cost, $14,800. Direct labor $175,000; Factory
$240,200
$259,700
$295,700
$220,000
Step by step
Solved in 3 steps with 2 images
