Question: Rippel uses a JIT production system and backflush costing with two trigger points for making...
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Question: Rippel uses a JIT production system and backflush costing with two trigger points for making entries in the accounting system: Completion of finished goods Sale of finished goods They are allocated to the units sold at standard costs. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold. Rippel's August standard cost per meter is direct material. $30, and conversion cost. $15. Rippel has no direct materials variances. Item Direct materials purchased Conversion costs incurred Item Number of finished units manufactured $590,000 Number of finished units sold Cost $786,000 Amount 30.000 25,000 Beginning balance of direct materials $20,000 Required 1. Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs. Assume no direct materials variances. 2. Post the entries in requirement 1 to T-accounts. Question: Rippel uses a JIT production system and backflush costing with two trigger points for making entries in the accounting system: Completion of finished goods Sale of finished goods They are allocated to the units sold at standard costs. Any under- or overallocated conversion costs are written off monthly to Cost of Goods Sold. Rippel's August standard cost per meter is direct material. $30, and conversion cost. $15. Rippel has no direct materials variances. Item Direct materials purchased Conversion costs incurred Item Number of finished units manufactured $590,000 Number of finished units sold Cost $786,000 Amount 30.000 25,000 Beginning balance of direct materials $20,000 Required 1. Prepare summary journal entries for August, including the disposition of under- or overallocated conversion costs. Assume no direct materials variances. 2. Post the entries in requirement 1 to T-accounts.
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16 18 19 12 Direct material cost1786 or 590000 Conversion bal... View the full answer
Related Book For
Management And Cost Accounting
ISBN: 9781292232669
7th Edition
Authors: Alnoor Bhimani, Srikant M. Datar, Charles T. Horngren, Madhav V. Rajan
Posted Date:
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