CHAPTER 5 - JUST IN TIME AND BACKFLUSH ACCOUNTING
TRUE/FALSE
1. True
2. True
3. False
4. True
5. True
6. True
7. True
8. True
9. True
10. False
Problem 1 - AJE Corporation
1)
Raw and In Process
Accounts Payable
16,000
2)
Cost of goods sold
Accrued payroll
FO Applied
32,000
Finished goods
Raw and In Process
13,500
3)
Raw and In Process
Cost of goods sold
16,000
4)
15,000
17,000
1,000
1,000
Cost of goods sold
Finished goods
12,700
Finished goods
Cost of goods sold
1,700
12700
1,700
13,500
Problem 2 – Magnolia Corporation
CORRECTION: Direct labor cost P 350,000; Factor overhead –
P380,000
1)
2)
Raw and In Process
Accounts payable
444,000
Finished goods
Raw and In process
443,000
3)
447,000
447,000
443,000
Mat. In FG beg. (24,000-8,000)
Mat. In FG end (19,000-7,000)
Mat. Content of units sold
444,000
16,000
( 12,000)
447,000
443,000
4)
Purchases
Mat. In RIP beg (23,400-2,400)
Mat. In RIP end (25,600-3,600)
Mat. Content of FG
Cost of goods sold
Accrued payroll
FO Applied
Cost of goods sold
Finished goods
Mat. Content of FG
444,000
21,000
( 22,000)
443,000
Raw and In Process
Cost of goods sold
1,200
1,200
Conversion cost in RIP end
Conversion cost in RIP beg
Adjustment
3,600
( 2,400)
1,200
730,000
350,000
380,000
5)
Cost of goods sold
Finished goods
1,000
1,000
Conversion cost in FG end
Conversion cost in FG beg
Adjustment
Problem 3 – Pocahontas Manufacturing Company
1.
Materials purchased
Materials in RIP beg (11,000 – 1,200)
Materials in RIP end (12,400 – 1,700)
Materials backflushed from RIP to FG
2.
3)
346,000
9,800
( 10,700)
345,100
Materials backflushed from RIP to FG
Materials in FG beg ( 12,000 – 4,000)
Materials in FG end ( 9,800 - 3,100)
Materials backflushed from FG to CofGS
345,100
8,000
( 6,700)
246,400
a) Raw and In process
Accounts payable
346,000
b) Cost of goods sold
Accrued payroll
FO Applied
250,000
7,000
(8,000)
(1,000)
c) Finished goods
Raw and In Process
345,100
d) Cost of goods sold
Finished goods
246,400
e) Raw and In Process
Cost of goods sold
Finished goods
500
400
345,100
246,400
900
RIP
End
1,700
Beginning
(1,200)
Increase (decrease)
500
346,000
FG
3,100
(4,000)
( 900)
100,000
150,000
Problem 4 – Barbie Mfg. Company
Materials backflushed from RIP
99,850
Additional information – DL 80,000; FOH– 60,000
1)
Raw and In Process
Accounts payable
100,000
100,000
3)
2)
Finished goods
Raw and In Process
99,850
Materials purchased
Materials in RIP beg. (5,000-500)
Materials in RIP end (5,250-650)
Cost of goods sold
Finished goods
102,850
102,850
99,850
100,000
4,500
( 4,650)
Materials backflushed from RIP
Materials in FG beg. (11,250-3.250)
Materials in FG end ( 7,500-2,500)
Materials backflushed from CofGS
99,850
8,000
( 5,000)
102,850
Finished goods
4)
5)
Cost of goods sold
Accrued payroll
FO Applied
Raw and in process
Cost of goods sold
750
140,000
80,000
60,000
RIP
End
650
Beginning
(500)
Increase (decrease) 150
150
600
FG
2,500
(3,250)
750
Problem 5 – Chiz Manufacturing Company
1)
2)
3)
Materials purchased
246.000
Materials in RIP beg. ( 14,500-7,200)
Materials in RIP end ( 22,400-15,700)
Materials backflushed from RIP to FG
4)a)
7,300
( 6,700)
246,600
Materials backflushed from RIP to FG
Materials in FG beg. (16,000-8,800)
Materials in FG end (19,800-13,100)
Materials backflushed from FG to CofGS
246,600
7,200
( 6,700)
247,100
Materials purchased
RIP beg.
FG beg.
Direct labor
Factory overhead
RIP end
FG end
Cost of goods sold
246,000
14,500
16,000
98,000
125,000
( 22,400)
( 19,800)
457,300
b)
c)
d)
e)
Raw and in process
Accounts payable
246,000
Finished goods
Raw and in process
246,600
Cost of goods sold
Finished goods
247,100
Cost of goods sold
Accrued payroll
FO Applied
223,000
246,000
246,600
247,100
98,000
125,000
Raw and in process
Finished goods
Cost of goods
END
BEGINNING
Increase (Decrease)
8,500
4,300
12,800
RIP
15,700
( 7,200)
8,500
FG
13,100
( 8,800)
4,300