Chapter 5

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 4)

Cost of goods sold Finished goods Finished goods Cost of goods sold

16,000 15,000 17,000 13,500 1,000 1,000 12,700 12700 1,700 1,700

Problem 2 – Magnolia Corporation

CORRECTION: Direct labor cost P 350,000; Factor overhead – P380,000 1) Raw and In Process 444,000 Accounts payable 444,000 2)

Finished goods Raw and In process 443,000

443,000

Purchases 444,000 Mat. In RIP beg (23,400-2,400) 21,000 Mat. In RIP end (25,600-3,600) ( 22,000) Mat. Content of FG 443,000

Cost of goods sold Accrued payroll FO Applied Page 2 3) Cost of goods sold Finished goods Mat. Content of FG Mat. In FG beg. (24,000-8,000) Mat. In FG end (19,000-7,000) Mat. Content of units sold 4)

447,000 447,000 443,000 16,000 ( 12,000) 447,000

Raw and In Process Cost of goods sold Conversion cost in RIP end Conversion cost in RIP beg Adjustment

5)

730,000 350,000 380,000

1,200 1,200 3,600 ( 2,400) 1,200

Cost of goods sold Finished goods Conversion cost in FG end Conversion cost in FG beg Adjustment

1,000 1,000 7,000 (8,000) (1,000)

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

346,000 9,800 ( 10,700) 345,100

2.

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) 346,400

3)

a) Raw and In process Accounts payable

346,000 346,000

b) Cost of goods sold Accrued payroll FO Applied

250,000 100,000 150,000

c) Finished goods Raw and In Process

345,100 345,100

d) Cost of goods sold Finished goods

346,400 346,400

Page 3 e) Raw and In Process Cost of goods sold Finished goods End Beginning Increase (decrease(

500 400 900 RIP 1,700 (1,200) 500

FG 3,100 (4,000) ( 900)

Problem 4 – Barbie Mfg. Company Additional information – Direct labor 80,000; factory overhead – 60,000 1) Raw and In Process 100,000 Accounts payable 100,000 2)

Finished goods Raw and In Process

99,850 99,850

Materials purchased Materials in RIP beg. (5,000-500) Materials in RIP end (5,250-650) Materials backflushed from RIP 3)

Cost of goods sold Finished goods

102,850 102,850

Materials backflushed from RIP Materials in FG beg. (11,250-3.250) Materials in FG end ( 7,500-2,500) Materials backflushed from CofGS 4)

5)

100,000 4,500 ( 4,650) 99,850

99,850 8,000 ( 5,000) 102,850

Cost of goods sold Accrued payroll FO Applied

140,000 80,000 60,000

Raw and in process Cost of goods sold Finished goods

150 600 750 RIP

FG

End Beginning Increase (decrease)

650 (500) 150

2,500 (3,250) 750

Page 3 Problem 5 – Chiz Manufacturing Company 1)

Materials purchased Materials in RIP beg. ( 14,500-7,200) Materials in RIP end ( 22,400-15,700) Materials backflushed from RIP to FG

246.000 7,300 ( 6,700) 246,600

2)

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

3)

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

a)

Raw and in process Accounts payable

246,000 246,000

b)

Finished goods Raw and in process

246,600 246,600

c)

Cost of goods sold Finished goods

247,100 247,100

d)

Cost of goods sold Accrued payroll FO Applied

223,000

4)

e)

98,000 125,000

Raw and in process Finished goods Cost of goods END

8,500 4,300 12,800 RIP 15,700

FG 13,100

BEGINNING Increase (Decrease)

( 7,200) 8,500

( 8,800) 4,300