CHAPTER 5 - JUST IN TIME AND BACKFLUSH ACCOUNTING

TRUE/FALSE
1. True 6. True
2. True 7. True
3. False 8. True
4. True 9. True
5. True 10. False

Problem 1 - AJE Corporation

1) Raw and In Process 16,000
Accounts Payable 16,000

2) Cost of goods sold 32,000

Accrued payroll 15,000
FO Applied 17,000

3) Finished goods 13,500

Raw and In Process 13,500

Raw and In Process 1,000

Cost of goods sold 1,000

4) Cost of goods sold 12,700

Finished goods 12700

Finished goods 1,700

Cost of goods sold 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 443,000

Raw and In process
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 730,000
Accrued payroll 350,000
FO Applied 380,000

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3) Cost of goods sold 447,000
Finished goods 447,000
Mat. Content of FG 443,000
Mat. In FG beg. (24,000-8,000) 16,000
Mat. In FG end (19,000-7,000) ( 12,000)
Mat. Content of units sold 447,000

4) Raw and In Process 1,200

Cost of goods sold 1,200

Conversion cost in RIP end 3,600

Conversion cost in RIP beg ( 2,400)
Adjustment 1,200

5) Cost of goods sold 1,000

Finished goods 1,000

Conversion cost in FG end 7,000

Conversion cost in FG beg (8,000)
Adjustment (1,000)

Problem 3 Pocahontas Manufacturing Company

1. Materials purchased 346,000
Materials in RIP beg (11,000 1,200) 9,800
Materials in RIP end (12,400 1,700) ( 10,700)
Materials backflushed from RIP to FG 345,100

2. Materials backflushed from RIP to FG 345,100

Materials in FG beg ( 12,000 4,000) 8,000
Materials in FG end ( 9,800 - 3,100) ( 6,700)
Materials backflushed from FG to CofGS 346,400

3) a) Raw and In process 346,000

Accounts payable 346,000

b) Cost of goods sold 250,000

Accrued payroll 100,000
FO Applied 150,000
 c) Finished goods 345,100
Raw and In Process 345,100

d) Cost of goods sold 346,400

Finished goods 346,400
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e) Raw and In Process 500

Cost of goods sold 400
Finished goods 900

RIP FG
End 1,700 3,100
Beginning (1,200) (4,000)
Increase (decrease( 500 ( 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 99,850

Raw and In Process 99,850

Materials purchased 100,000

Materials in RIP beg. (5,000-500) 4,500
Materials in RIP end (5,250-650) ( 4,650)
Materials backflushed from RIP 99,850

3) Cost of goods sold 102,850

Finished goods 102,850

Materials backflushed from RIP 99,850

Materials in FG beg. (11,250-3.250) 8,000
Materials in FG end ( 7,500-2,500) ( 5,000)
Materials backflushed from CofGS 102,850

4) Cost of goods sold 140,000

Accrued payroll 80,000
FO Applied 60,000

5) Raw and in process 150

Cost of goods sold 600
Finished goods 750

RIP FG
 End 650 2,500
Beginning (500) (3,250)
Increase (decrease) 150 750

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Problem 5 Chiz Manufacturing Company

1) Materials purchased 246.000

Materials in RIP beg. ( 14,500-7,200) 7,300
Materials in RIP end ( 22,400-15,700) ( 6,700)
Materials backflushed from RIP to FG 246,600

2) Materials backflushed from RIP to FG 246,600

Materials in FG beg. (16,000-8,800) 7,200
Materials in FG end (19,800-13,100) ( 6,700)
Materials backflushed from FG to CofGS 247,100

3) Materials purchased 246,000

RIP beg. 14,500
FG beg. 16,000
Direct labor 98,000
Factory overhead 125,000
RIP end ( 22,400)
FG end ( 19,800)
Cost of goods sold 457,300

4) a) Raw and in process 246,000

Accounts payable 246,000

b) Finished goods 246,600

Raw and in process 246,600

c) Cost of goods sold 247,100

Finished goods 247,100

d) Cost of goods sold 223,000

Accrued payroll 98,000
FO Applied 125,000

e) Raw and in process 8,500

Finished goods 4,300
Cost of goods 12,800

RIP FG
END 15,700 13,100
BEGINNING ( 7,200) ( 8,800)
Increase (Decrease) 8,500 4,300