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Chapter 16 692 RIP- 3. The Maganda Manufacturing Company uses Materials and in process (MIP) inventory account. At the end of each month, all inventories are counted, their conversion costs components are estimated, and inventory account balances are adjusted accordingly. Raw materials cost is backflushed from MIP account to Finished Goods account. The following data is for the month of August: 8 Beginning balance of MIP account Conversion costs incurred Raw materials purchased Conversion costs applied Ending balance of MIP account P38,700 4,800 680,000 5,300 41,900 The amount of direct materials and conversion costs to be backflushed to finished goods are: a. P676,800 and P4,800 respectively. b. P680,000 and P4,800 respectively. C. P676,800 and P5,300 respectively. d. P680,000 and P5,300 respectively. The Action Carnoration manufactures electrical meters. For May, no beginning inventory of raw materials and no beginning and ending lalakas Company produces telephones. For June, there were work in process. Malakas uses a JIT manufacturing system and backflush costing with two trigger points for making entries in its ed accounting system: Purchase of raw materials Sales of finished goods Malakas' standard cost per unit of telephone in June is direct materials, P26; conversion costs, P15. The following data apply to June production: Raw materials purchased Conversion costs incurred Number of finished units manufactured Number of finished units sold P5,300,000 3,080,000 200,000 192,000 The balances of Materials and in Process Inventory and Cost of Goods Sold accounts at the end of June are: a. P308,000 and P7,872,000 respectively. b. P5,300,000 and P7,872,000 respectively. c. P308,000 and P4,992,000 respectively. d. P4,992,000 and P2,880,000 respectively