Reference no: EM132787268
Question 1 - Paz Company has a cycle of 3 days, uses a Raw and In Process Account (RIP) and charges all conversion costs to cost of goods sold. 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 backflused from Raw and in Process (RIP) Account to finished goods. The following information is provided for the month of June:
Beginning Balance of RIP Account, including P2,000 conversion cost 10,000
Begging Balance of finished goods account including P12,000 conversion cost 20,000
Raw materials received on credit 800,000
Direct labor cost 600,000
Factory overhead applied 1,000,000
Ending RIP inventory per physical count, including P14,000 conversion cost 40,000
Ending finished goods inventory per physical count, including P8,000 conversion cost 12,000
Required - What is the amount of conversion cost included cost of goods sold in June?
Question 2 - Paz Company has a cycle of 3 days, uses a Raw and In Process Account (RIP) and charges all conversion costs to cost of goods sold. 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 backflused from Raw and in Process (RIP) Account to finished goods. The following information is provided for the month of June:
Beginning Balance of RIP Account, including P2,000 conversion cost 10,000
Begging Balance of finished goods account including P12,000 conversion cost 20,000
Raw materials received on credit 800,000
Direct labor cost 600,000
Factory overhead applied 1,000,000
Ending RIP inventory per physical count, including P14,000 conversion cost 40,000
Ending finished goods inventory per physical count, including P8,000 conversion cost 12,000
Required - What is the amount of direct materials backflused from RIP to finished goods?
Question 3 - Paz Manufacturing Company makes three products: A and B were considered main products and C was a by-product. The joint cost was P276,600. It was the company's policy to allocate the joint cost using the net realizable value method and the net realizable value of the by-product was accounted using the realizable value approach. The following data were given:
|
Product
|
Production (lbs)
|
Sales price per lbs
|
Separable Costs
|
|
A
|
220,000
|
P6.00
|
P320,000
|
|
B
|
180,000
|
P3.00
|
P190,000
|
|
C
|
50,000
|
P0.90
|
P6,900
|
Required - What is the amount of joint cost allocated to Product B?
a. 69,242
b. 71,711
c. 80,303
d. 61, 833
Question 4 - Paz Manufacturing Company makes three products: A and B were considered main products and C was a by-product. The joint cost was P276,600. It was the company's policy to allocate the joint cost using the net realizable value method and the net realizable value of the by-product was accounted using the realizable value approach. The following data were given:
|
Product
|
Production (lbs)
|
Sales price per lbs
|
Separable Costs
|
|
A
|
220,000
|
P6.00
|
P320,000
|
|
B
|
180,000
|
P3.00
|
P190,000
|
|
C
|
50,000
|
P0.90
|
P6,900
|
Required - What is the gross profit/(gross loss) generated by Product A?
a. 803,703
b. 823,333
c. 830,742
d. 795,111