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 Materials is backflushed from RIP to Finished Goods. The following information is for the month of August:

RIP beginning, including P6,900 of conversion Cost ........... P42,600 

FG beginning, including P17,000 of conversion cost ............ 45,000

Raw Materials purchased on credit ...................................... 356,000

RIP end, including P4,500 of conversion cost estimate ......... 22,500 

FG end, including P5,000 of conversion cost estimate .......... 16,500 

Required:

 Prepare all journal entries that involve the RIP account and/or finished goods account.

Answer rating: 100% (QA)

Journal entry for the transaction will be 1 Dr Raw and inprocess RIP 356000 Cr Account payable 3560... View the full answer