Problem 2 The Magnolia Corporation has a cycle time of 1.5 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 materials cost is backflushed from raw and in process account to finished goods. The following information is for July. Beginning balance of RIP account, including P 2,400 of conversion cost Beginning balance of finished goods account, including P8.000 of conversion cost Raw materials received on credit Ending RIP inventory per physical count. including P 3,600 conversion cost estimate Ending FG inventory per physical count, including 23,400 24,000 444,000 25,600

Problem 2 The Magnolia Corporation has a cycle time of 1.5 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 materials cost is backflushed from raw and in process account to finished goods. The following information is for July. Beginning balance of RIP account, including P 2,400 of conversion cost Beginning balance of finished goods account, including P8.000 of conversion cost Raw materials received on credit Ending RIP inventory per physical count. including P 3,600 conversion cost estimate Ending FG inventory per physical count, including 23,400 24,000 444,000 25,600

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 32P: Refer to the data in Problem 6.31. Assume that the FIFO method is used. Required: 1. Prepare a...

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