JUST IN TIME SYSTEM AND BACKFLUSH ACCOUNTING

Sillicon Valley Corporation (SVC), which produces keyboards for personal computers. We assume the following information for SVC for the month of April.

• There are no beginning inventories of direct materials. Moreover, there is zero beginning and ending work in process.
• SVC has only one direct manufacturing cost strategy (direct materials) and one indirect manufacturing cost category (conversion costs). All manufacturing labor costs are included in conversion costs.
• From its bill of materials and an operations list, SVC determines that direct material cost per keyboard unit is P20 and estimated conversion cost is P10.
• SVC purchases P1,880,000 of direct materials. Actual conversion costs equal P1,280,000. SVC produces 90,000 good keyboard units and sells 87,000 units.
• Any under allocated or over allocated conversion costs are written off to Cost of goods sold at the end of the month.

Requirements:

1. Trigger Points Purchase & Sale: How much will be the Ending Balance of the Raw and In Process Account?

2. Trigger Points Completion & Sale: How much will be the Ending Balance of the Raw and In Process Account?

3. Trigger Points Completion & Sale: How much will be the Ending Balance of the Finished Goods Account?