Question
A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting . At the beginning of January, the
A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting.
At the beginning of January, the RIP account has a balance of $0. On January 10, the firm purchases 1,000 lbs of raw materials worth $10,000. At the end of the month, 10 lbs of raw materials (worth $100) remain unused. 50 units were in process ($6 material cost per unit)
If you searched for the RIP account in the firm's cost accounting records on January 15, what balance would that account show?
Group of answer choices
$10,000
$100
$0
$400
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