Reference no: EM132950573

Question - DD Company uses 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 account to Finished Goods account. The following information is for September, 2020:

-Raw materials received on account, P700,000.

-Beginning balance of RIP account, P50,000.

-Beginning balance of Finished Goods account, including P12,500 of conversion costs is P78,000.

-Direct labor costs, P600,000; Factory overhead applied, P400,000.

-Ending balance of RIP account, P60,000.

-Ending balance of Finished Goods account, including P10,000 of conversion costs is P75,000.

Required -

-Journalize the above transactions.

-Compute the material cost of the units completed.

-Compute the material cost and conversion costs of the units sold in September.