Reference no: EM132765210
Question - Cersei Company has a cycle tìme of 3 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 costs 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:
Beginning balance of RIP account, including P3,000 of conversion costs P29,250
Beginning balance of Finished Goods account, including P10,000 of conversion costs P30,000
Raw materials received on credit P562,500
Direct Labor cost, P375,000; Factory Overhead applied, P450,000 P825,000
Ending RIP inventory per physical count, including P4,500 of conversion costs P32,000
Ending finished goods inventory per physical count, including P8,750 of conversion costs P26,250
Required - What is the conversion cost of units sold in June?
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