1. Nica provided the following information for the transaction occurred during August. The production plant uses the JIT costing system. Raw materials costing P750,000 were purchased All direct materials costing P750,000 were requisitioned for production Direct labor costs of P500,000 were incurred Actual factory overhead costs amounted to P2,487,500 Applied conversion cost totaled P3,250,000. This includes the direct labor cost. All units are completed and immediately sold. The RIP used to be backflushed to FG is?

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28 How much is the adjustment to the Cost of Sales account to set up its correct balance? (2 Points) Lucky Manufacturing Company uses a Raw and in Process account and charges all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted, their conversion costs are estimated and inventory accounts are adjusted. The following information is available for the month of August. Beg. Balance of RIP, including Raw Materials of P84,000 Beg. Balance FG, including Raw Materials of P64,000 Raw materials purchased on account Ending balance of RIP, including Raw Materials of P88,000 Ending balance of FG, including Raw Materials of P48,000 Conversion costs added to production P93,600 96.000 1,776,000 101,600 77,600 950,000 28 How much is the adjustment to the Cost of Sales account to set up its correct balance? (2 Points) Lucky Manufacturing Company uses a Raw and in Process account and charges all conversion costs to Cost of Goods Sold. At the end of each month, all inventories are counted, their conversion costs are estimated and inventory accounts are adjusted. The following information is available for the month of August. Beg. Balance of RIP, including Raw Materials of P84,000 Beg. Balance FG, including Raw Materials of P64,000 Raw materials purchased on account Ending balance of RIP, including Raw Materials of P88,000 Ending balance of FG, including Raw Materials of P48,000 Conversion costs added to production P93,600 96.000 1,776,000 101,600 77,600 950,000

Answer rating: 100% (QA)

28 The RIP used to be back... View the full answer