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The Compaq Manufacturing Company has a cycle of 1.5 days, uses a raw and in process (RIP) 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 to Finished Goods.
The following information is for June:
Problem 1: How much is the amount of Cost of Goods Sold after all transactions and adjustments were completed?
Problem 2: How much is the amount to be backflushed from Finished Goods to Cost of Goods Sold?
questiongeneral mills nyse gis is a large distributor and manufacturer of package consumer food products. benoit
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