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What is the amount to be backflushed from RIP to finished goods?

What is the amount to be backflushed from RIP to finished goods?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 1E: Inventory Accounts for a Manufacturing Company Fujita Company produces a single product. Costs...
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What is the amount to be backflushed from RIP to finished goods?

The Backflushers Manufacturing Corp. uses a Raw and In Process 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 backflushed from RIP to finished goods. The following information is for the month of May: Raw and In Process inventory account, May 1, including P500 of conversion P 5,000 cost Raw materials received during May (50% down, balance in four installments) 100,000 Raw and In Process inventory account, May 31, including P650 of estimated conversion cost 5,250
Transcribed Image Text:The Backflushers Manufacturing Corp. uses a Raw and In Process 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 backflushed from RIP to finished goods. The following information is for the month of May: Raw and In Process inventory account, May 1, including P500 of conversion P 5,000 cost Raw materials received during May (50% down, balance in four installments) 100,000 Raw and In Process inventory account, May 31, including P650 of estimated conversion cost 5,250
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