Question
Senin Manufacturing Company uses a raw and in process (R&IP) inventory account and expenses all conversion costs to the cost of goods sold account. At
Senin Manufacturing Company uses a raw and in process (R&IP) inventory account and expenses all conversion costs to the cost of goods sold account. At the end of each month, all inventories are counted, their conversion cost components are estimated, and inventory account balances are adjusted accordingly. Raw materials cost is back flushed from R&IP to Finished Goods account. The following information is for the month of August:
Beginning balance of R&IP account, including RM1,400.00 conversion cost Raw materials received on credit
Ending R&IP inventory per physical count, including RM1,800 conversion cost estimate | RM31,000
367,000
33,000 |
Required:
Compute the amount to be back flushed from R&IP to finished goods account.
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