The Smart Manufacturing Company has a cycle time of 3.0 days, uses a Raw and In...

 

Transcribed Image Text:

The Smart Manufacturing Company has a cycle time of 3.0 days, 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 cost components are estimated and inventory account balances are adjusted. Raw material cost is backflushed from RIP to Finished Goods. The following information is for the month of June. Materials purchased on credit RIP beginning, including P4,400 of conversion costs FG beginning, including P10,800 of conversion costs RIP end, including P 7,800 of conversion costs FG end, including P 6,500 of conversion costs Conversion cost-P 80,000 direct labor and P100,000 overhead Requirements P 146,000 15,000 36,000 24,000 18,000 1. Compute for the amount of materials backflushed from RIP to Finished Goods 2. Compute for amount of materials backflushed from Finished Goods to CofGS. 3. Journal entries to record the above transactions Problem 4 The Chiz Manufacturing Company has a cycle time of 2.0 days, uses a Raw and In Process account (RIP) and charges all conversion cost 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. Raw materials cost is backflushed from RIP to Finished Goods. The following is for the month of May. RIP beginning, including P12,000 of conversion cost FG beginning, including P 8,800 of conversion cost Raw materials purchased on credit RIP end, including P 15,700 of conversion cost FG end, including P 13,100 of conversion cost P 40,000 35,000 230,000 28,500 19,800 Conversion cost-P 180,000 of direct labor and P 225,000 of overhead Requirements: 1. Amount of materials backflushed from RIP to Finished Goods 2. Amount of materials backflushed from Finished Goods to Cost of Goods Sold. 3. Journal entries to record the given transactions The Smart Manufacturing Company has a cycle time of 3.0 days, 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 cost components are estimated and inventory account balances are adjusted. Raw material cost is backflushed from RIP to Finished Goods. The following information is for the month of June. Materials purchased on credit RIP beginning, including P4,400 of conversion costs FG beginning, including P10,800 of conversion costs RIP end, including P 7,800 of conversion costs FG end, including P 6,500 of conversion costs Conversion cost-P 80,000 direct labor and P100,000 overhead Requirements P 146,000 15,000 36,000 24,000 18,000 1. Compute for the amount of materials backflushed from RIP to Finished Goods 2. Compute for amount of materials backflushed from Finished Goods to CofGS. 3. Journal entries to record the above transactions Problem 4 The Chiz Manufacturing Company has a cycle time of 2.0 days, uses a Raw and In Process account (RIP) and charges all conversion cost 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. Raw materials cost is backflushed from RIP to Finished Goods. The following is for the month of May. RIP beginning, including P12,000 of conversion cost FG beginning, including P 8,800 of conversion cost Raw materials purchased on credit RIP end, including P 15,700 of conversion cost FG end, including P 13,100 of conversion cost P 40,000 35,000 230,000 28,500 19,800 Conversion cost-P 180,000 of direct labor and P 225,000 of overhead Requirements: 1. Amount of materials backflushed from RIP to Finished Goods 2. Amount of materials backflushed from Finished Goods to Cost of Goods Sold. 3. Journal entries to record the given transactions

Answer rating: 100% (QA)

Answer Problem 1 1 Amount of materials backflushed from RIP to Finished Goods Materials backflushed ... View the full answer