Question
Basilio Company has a cycle time of 3 days, uses a Materials and In Process (MIP) account, and charges all conversion costs to Cost of
Basilio 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 each month, all inventories are counted, their conversion costs components are estimated and inventory account balances are adjusted. Raw material cost is backflushed from MIP to Finished Goods. The following information id for June:
Beginning balance MIP account, including P3,000 of
conversion costs P29,250
Beginning balance of finished goods account, including
P10,000 of conversion costs 30,000
Raw materials received on credit 562,500
Ending MIP inventory per physical count,
including P4,500 of conversion costs 32,000
Ending finished goods inventory per physical
count, including P8,750 of conversion costs 26,250
What is the balance of cost of goods sold on June?
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