The Scottsville Manufacturing Company uses a raw and in process (RIP) inventory account and expenses all conversion costs 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 back flushed from RIP to Finished Goods. The following information is for March:
Beginning balance of RIP account, including $1,000 of conversion cost ...................$ 10,000
Raw materials received on credit .................................................................. 200,000
Ending RIP inventory per physical count, including $1,300 conversion cost estimate ..... 10,500
Required:
Prepare the three journal entries involving the RIP account.