CLUBVILLE

RIP A/P
A summary entry for all receipts of raw materials during the period. When direct materials are used, no entry is needed, because the materials remain in RIP.

456,000 456,000

FG RIP
To backflush material cost from RIP to finished goods. Material in May 1 RIP balance Material received during May Material in May 31 RIP, per physical count Amount to be backflushed

455,000 455,000
19,000 456,000 475,000 20,000 455,000

Cost of Goods Sold FG

To backflush material cost from finished goods to cost of goods sold. Material in May 1 finished goods Material backflushed to finished goods Material in May 31 finished goods, per physical count Amount to be backflushed

461,000 461,000
16,000 455,000 471,000 10,000 461,000

COGS RIP FG
Conversion cost in RIP is adjusted from the $2,300 of May 1 to the $2,100 estimate at May 31

1,700 200 1,500

Conversion cost in finished goods is adjusted from the $6,500 of May 1 to the $ 5,000 estimate at May 31 The offsetting entry is 'made to the cost of goods sold account, where all conversion costs were charged during May

RAPIDAN RIP A/P

A summary entry for all receipts of raw materials during the period. When direct materials are used, no entry is needed, because they remain a part of RIP

246,000 246,000

COGS RIP
To backflush material cost from RIP to Cost of Goods Sold. Material in May 1 RIP balance Material received during May Material in May 31 RIP, per physical count Amount to be backflushed

247,000 247,000
11,000 246,000 257,000 (10,000) 247,000

RIP COGS
Conversion cost in RIP is adjusted from the $1,300 of May 1 to the $2,100 estimate at May 31 The offsetting entry is made to the cost of goods sold account, where all conversion cost were charge during May

800 800

HILLA a RIP A/P

A summary entry for all receipts of raw materials during the period. When direct materials are used, no entry is needed, because they remain a part of RIP

850,000 850,000

FOH CONTROL SUPPLIES

Indirect materials are recorded as used.

13,000 13,000

PAYROLL ACCRUED PAYROLL ACCRUED PAYROL CASH COGS FOH CONTROL Marketing Expenses Control Administrative Expenses Control PAYROLL
Direct labor is expensed to the cost of goods sold account.

400,000 400,000

60,000 120,000 130,000 90,000 400,000

FOH CONTROL Accumulated Depreciation Prepaid Insurance FOH Control CASH A/P COGS FOH CONTROL
Overhead is expensed to the cost of goods sold account.

681,000 668,000 13,000 83,000 54,000 29,000 897,000 897,000

FG RIP
To backflush material cost from RIP to finished goods. Material in June 1 RIP balance Material received during June Material in June 30 RIP, per physical count Amount to be backflushed

844,000 844,000
40,000 850,000 890,000 (46,000) 844,000

COGS FG
To backflush material cost from Finished Goods to Cost of Goods Material in June 1 Finished Goods Material cost transferred from RIP Material in June 30 finished goods, per physical count Amount to be backflushed ............... $ 852,000

852,000 852,000
190,000 844,000 1,034,000 (182,000) 852,000

RIP COGS FG

300 2,700 3,000

Conversion costs in the inventory accounts are adjusted to the estimates MADE IN THE June 30 physcal count For the RIP the adjustment is from the $1,600 of June 1 to $1,900 on June 30; For FG the, adjustment is from the $180,000 of June 1 to $178,000 on June 30. The offsetting entry is made to the cost of goods sold account, where all conversion cost were charge during June

RIP 41,600 850,000 300 47,900 FG 370,000 844,000 360,000 COGS 60,000 897,000 852,000 1,700 1,810,700

844,000

852,000 2,000