UNIT VI – JUST-IN-TIME (JIT)/BACKFLUSH ACCOUNTING
Name: ______________________
Course: _____________________
Activity 1 :
1. D
Raw Materials Received on credit 367,000
Less: Ending RIP 33,000
Conversion Cost estimate (1,800) (31,200)
Total 335,800
Add: Beginning RIP 31,000
Conversion Cost (1,400) 29,600
Amount to be backflushed to Finished Goods 365,400
2. B
Raw Materials 950,000
Direct Labor 2,500,000
Factory Overhead 6,000,000
Total Manufacturing Cost 9,450,000
Applied Factory overhead (400,000)
Finished Goods, Inventory 9,050,000
Applied factory overhead = 6,000,000 – (8,100,000-2,500,000)
= 6,000,000 – 5,600,000
= 400,000
3. A
Amount of raw materials backflushed 202,500
Less: Beginning RIP (10,000)
Total 190,000
Add: Ending RIP 15,000
Raw Materials purchased on credit 205,000
4. D
Direct Labor cost 375,000
Applied Factory Overhead 450,000
Total Conversion Cost 825,000
Less: Conversion Cost
Ending MIP 4,500
Beginning MIP (3,000) (1,500)
Add: Conversion Cost
Ending MIP 8,750
Beginning MIP (10,000) 1,250
Conversion Cost of units sold in June 824,750
5.
1 Raw and In Process 444,000
Accounts Payable 444,000
To record product cost
2 Cost of Goods Sold 399,000
Wages Payable 210,000
Applied Factory Overhead 189,000
To record product cost
3 Finished Goods 443,120
Raw and In Process 443,120
To record transfer of cost of units completed
Raw Material Purchased 444,000
Raw and In Process, beg
(23,400 – 14,040) 9,360
Less: Raw and In Process, end
(25,600 – 15,360) (10,240)
Amount to be backflushed 443,120
4 Cost of Goods Sold 445,120
Finished Goods 445,120
To record transfer of units sold
Materials cost of units completed 443,120
Material in FG, beg(24,000-14,400) 9,600
Less: Materials in FG, end (19,000-11,400) (7,600)
Amount to be backflushed 445,120
5 Cost of Goods Sod 28,440
Raw and In Process 14,040
Finished Goods 14,400
To adjust cost of goods sold for the
conversion cost of beginning balances
of raw and in process and finished
goods.
Raw and In process, beg 14,040
Finished Goods, Beg 14,400
Amount to be adjusted 28,440
6 Raw and In Process 15,360
Finished Goods 11,400
Cost of Goods Sold 26,760
To adjust cost of goods sold for the
conversion cost of ending balances
of raw and in process and finished
goods.
Raw and In process, end 15,360
Finished Goods, end 11,400
Amount to be adjusted 26,760
7. The balance of the cost of goods sold after adjustment is P845,800
Direct Labor P210,000
Factory Overhead 189,000
Total 399,000
Add: Finished Goods 445,120
Adjustments:
Conversion cost of RIP and FG beg 28,440
Conversion cost of RIP and FG end (26,760) 1,680
Cost of Goods Sold after adjustment P845,800
