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6. A Co. manufactures pipes and uses a job order costing system. During May, the following jobs were started
and the following cost were incurred:
Job X Job Y Job Z Total
Materials
Requisitioned P 10,000 20,000 15,000 P45,000
Direct labor 5,000 4,000 2,500 11,500
P 15,000 P24,000 P17,500 P56,500
In addition, estimated overhead of P300,000 and direct labor costs of P150,000 were estimated to be incurred
during the year. Actual overhead of P24,000 was incurred in May: overhead is applied on the basis of direct
labor pesos. If only JobX and Job Z were completed during the month, the appropriate entry to record the
initiation of all jobs would be?
7. The P Co. uses a raw and in process (RIP) 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 materials cost is backflushed
from RIP to Finished Goods. The following information is for the month of April
Beg. Balances of RIP, including P1,400 at conversion cost P12,300
Raw materials received on credit 367,000
Ending RIP inventory per physical count, including P1,800
conversion cost estimate 33,000
8. The B Co. produces only for customer order and most work is shipped within 36 hours of the receipt of an
order. B Co 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, inventory is counted, its conversion cost component is
eliminated, and the RIP account balance is adjusted accordingly. Raw material cost is backflushed from RIP
to cost of goods sold. The following information is for the month of May:
Beginning balance of RIP account, including P1,300
At conversion cost… P 12,300
Raw materials received on credit 246,000
Ending RIP inventory per physical count including
P2,100 conversion cost estimate 12,100
Ending RIP inventory per physical count, including P2,100
conversion cost estimate 12,100
Compute the amount to be backflushed from RIP to Cost of goods sold
and compute the amount of Cost of goods sold after all transaction and adjustments were made