1. The Combate Corporation uses the raw materials and in process (RIP) inventory account. At the end of each month, all inventories are counted, their conversion components are estimated, and inventory account balances are adjusted accordingly. Raw materials are back-flushed from RIP account to finished goods. The following data is for the month of May:

Raw materials purchases P5,100,000

Ending balance of RIP account 314,250

Conversion cost incurred 36,000

Conversion cost allocated 39,750

Beginning balance of RIP account 290,250

The amount of direct materials to be back-flushed to Finished Goods is:

a. P5,076,000

b. 5,100,00

d. P 5,414,250

c. P5,390,250

2. The Combate Corporation uses the raw materials and in process (RIP) inventory account. At the end of each month, all inventories are counted, their conversion components are estimated, and inventory account balances are adjusted accordingly. Raw materials are back-flushed from RIP account to finished goods. The following data is for the month of May:

Raw materials purchases P5,100,000

Ending balance of RIP account 314,250

Conversion cost incurred 36,000

Conversion cost allocated 39,750

Beginning balance of RIP account 290,250

The amount of conversion costs to be back-flushed to Finished Goods is:

d. P24,000

b. P39,750

c. P75,750

a. P36,000

3. problem:

. Hinghol Company has a cycle time of 3 days, uses a Materials and In process (MIP) account, and charges all conversion costs to Cost of Goods Sold, At the end of month, all inventories are counted, their conversion costs are estimated, and inventory account balances are adjusted. Raw material cost is back-flushed from MIP to Finished Goods. The following information is for June: Beginning balancer of MIP account including P3,000 Conversion cost P29,250 Beginning balance of Finished goods account, including P10,000 of Conversion cost Raw materials received on credit 30,000 562,500 Ending MIP Inventory per physical count, including P4,500 of CC 32,000 Ending finished goods inventory per physical count, including P8,750 of Conversion cost 26,250