Lee Corp. uses JIT system to account for its inventory. During January 2020, Lee produced 600,000...
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Lee Corp. uses JIT system to account for its inventory. During January 2020, Lee produced 600,000 wrappers and sold 596,000. The standard costs for each wrapper are as follows: Direct Materials Conversion Costs P4 P8 The company has no beginning inventories. The following transactions during January 2020: 1. Purchased P2,416,000 of direct materials 2. Incurred conversion costs amounting, P4,864,000. 3. Applied P4,800,000 of conversion costs to Raw-in Process Inventory. 4. Finished 600,000 wrappers. 5. Sold 596,000 wrappers for P20. Required: Prepare Journal entries using backflush costing with minimum number of entries. Lee Corp. uses JIT system to account for its inventory. During January 2020, Lee produced 600,000 wrappers and sold 596,000. The standard costs for each wrapper are as follows: Direct Materials Conversion Costs P4 P8 The company has no beginning inventories. The following transactions during January 2020: 1. Purchased P2,416,000 of direct materials 2. Incurred conversion costs amounting, P4,864,000. 3. Applied P4,800,000 of conversion costs to Raw-in Process Inventory. 4. Finished 600,000 wrappers. 5. Sold 596,000 wrappers for P20. Required: Prepare Journal entries using backflush costing with minimum number of entries.
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Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
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