Solution-Find amount of direct materials backflushed from

Find amount of direct materials backflushed from fgi to cogs

Reference no: EM132548906

Pierre Heud has a cycle of 3 days, and uses a Raw and In-process (RIP) account and charges all conversion costs to Cost of Goods Sold (COGS). At the end of each month, all inventories are counted, conversion costs components are estimated and inventory account balances are adjusted. Raw material cost is backflushed from RIP to Finished Goods Inventory (FGI).

The following information is provided for the month of May:

Required:

RIP - beginning, including PHP 1,000 conversion cost. 5,000

FGI - beginning, including PHP 6,000 conversion cost. 10,000

Raw materials received on credit. 400,000

Direct labor cost. 300,000

Factory overhead applied. 500,000

RIP - end, per physical count, including PHP 7,000 conversion cost. 20,000

FGI - end, per physical count, including PHP 4,000 conversion cost. 6,000

Question 1. Amount of conversion costs included in COGS for the month of May

Question 2. Amount of direct materials backflushed from RIP to FGI?

Question 3. Amount of direct materials backflushed from FGI to COGS?

Reference no: EM132548906

Questions Cloud

Movement along the demand curve : Does the following event constitute a shift in demand or movement along the demand curve

How much could advertising be increased to earn a monthly : Assume that the company expects to sell 25,000 units next month, would you recommend that the company automate its operation? Explain

What are the 4 types of market failure : What are the 4 types of market failure? Explain each and give an example of each

Difference between absolute and comparative advantage : What is the difference between an absolute and comparative advantage? Give an example.

Find amount of direct materials backflushed from fgi to cogs : Find Amount of direct materials backflushed from FGI to COGS? Amount of conversion costs included in COGS for the month of May

How much will the company net income increase : Assume that sales increase by Br. 400,000 next year. If cost behavior patterns remain unchanged, by how much will the company's net income increase?

Impose an excise tax on mcdonalds or gasoline : If the U.S. wants to maximize tax revenues, should we impose an excise tax on McDonalds or gasoline?

Relationship between price elasticity of demand : Describe the relationship between price elasticity of demand, total revenue and marginal revenue?

Discussion-welfare and public assistance myths : The world of welfare is replete with urban legends. My favorite goes something like this: "I was standing in line at the grocery store

User Account

All Pages

Find amount of direct materials backflushed from fgi to cogs

Reference no: EM132548906

Reference no: EM132548906

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT