COST ACCOUNTING

1.) In backflush costing, if the conversion cost in Raw and In Process was $1,000 on March 1 and $400 on March 31, the account to be credited for the $600 decrease would be A Finished Goods B. Raw Materials C. Raw and In Process D. Cost of Goods Sold 2.) In backflush costing, direct labor is charged to A Finished Goods account B. Raw and In Process account C. Work in Process account D. Cost of Goods Sold account 3.) of the following, the only activity that adds value to a product is: A. waiting time B. inspection time C. processing time D. moving time 4.) The cost accounting system that would be most apt to use a single inventory account entitled Raw and In Process (RIP) would be: A process costing B. backflush costing C. standard costing D. job order costing 5.) The Eagle Company has a cycle time of 1.5 days, uses raw and in process (RIP) account, and charges all conversion cost 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. Raw material cost is backflushed from RIP to Finished Goods. The following information is for June: (see table below) In recording the receipt of raw materials the account debited Beginning Balance of RIP account, including P1.200 conversion cost 11.700 Beginning balance of finished goods account, including P4,000 of conversion cost Raw materials received on credit Ending RIP inventory per physical count, including P1,800 conversion cost estimate Ending finished goods inventory per physical count, including P3,500 conversion cost estimate 12,000 220,000 12,800 9,500 A. Finished Goods account B. Cost of Goods Sold account C. Work in Process account D. Raw and In Process account