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. The Action Corporation manufactures electrical meters. For May, there were no beginning inventories of raw materials and no beginning and ending work in process.

. The Action Corporation manufactures electrical meters. For May, there were no

beginning inventories of raw materials and no beginning and ending work in process.

Action uses JIT manufacturing system and backflush costing with three trigger points for

making entries in the accounting system:

Purchase of raw materials - debited to raw and in process account

Completion of finished goods - debited to finished goods account

Sale of finished goods

No. 13 - Continued

Action's May standard costs per meter are direct materials, p25; and conversion

costs, P20. The following data apply to May manufacturing:

Raw materials and components purchased

P550,000

Conversion costs incurred

P440,000

Number of finished units manufactured

21,000

Number of finished units sold

20,000

The balance of raw and in process and finished goods inventory accounts at the

end of May are:

a.

P25,000 and P945,000 respectively

b.

P550,00 and P45,000 respectively

c.

P25,000 and P45,000 respectively

d.

P550,000 and P945,000 res

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