Chapter 6 Just in Time and Backflush Accounting 171 Problems Problem 1 Stillwater Manufacturing has a cycle time of less than a day, uses a Raw and In Process (RIP) account and expenses all conversion...

Chapter 6 Just in Time and Backflush Accounting

Problem 1

Extracted text: Chapter 6 Just in Time and Backflush Accounting 171 Problems Problem 1 Stillwater Manufacturing has a cycle time of less than a day, uses a Raw and In Process (RIP) account and expenses 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 accordingly. Raw material is backflushed from RIP to Finished Goods. The following information is for the month of August. RIP beginning, including P 25,560 of conversion cost FG beginning, including P 27,000 of conversion cost Raw materials purchased on credit RIP end, including P 13,500 of conversion cost estimate FG end, including P 9,600 of conversion cost estimate Direct labor - P 350,000; factory overhead- P 196,150,000 P 42,600 45,000 356,000 22,500 16,000 Required: Prepare all journal entries that involve the RIP account and/or finished goods account.