CHAPTER 5 - JUST IN TIME AND BACKFLUSH ACCOUNTING

TRUE/FALSE
True
True
False
True
True

6.
7.
8.
9.
10.

True
True
True
True
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

1)
Raw and In Process
444,000
Accounts payable
444,000
2)
0

Finished goods

443,00

Raw and In process

443

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

P380,000

444,000
21,000
( 22,000)
443,000

Cost of goods sold

730,000
Accrued payroll
350,000
FO Applied
380,000
Page 2
3)

Cost of goods sold

447,000
Finished goods
447,000
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)

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

Raw and In Process

1,200
Cost of goods sold
1,200
Conversion cost in RIP end
Conversion cost in RIP beg
Adjustment

3,600
( 2,400)
1,20

0
5)

Cost of goods sold

1,000
Finished goods
1,000
Conversion cost in FG end
Conversion cost in FG beg
Adjustment

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

Pocahontas Manufacturing Company

Materials purchased
346,000
Materials in RIP beg (11,000 1,200)

Problem 3
1.
9,800

Materials in RIP end (12,400

1,700)

( 10,700)
Materials backflushed from RIP to FG

34

5,100
2.
,100

Materials backflushed from RIP to FG

Materials in FG beg ( 12,000

345

4,000)

8,000
(

Materials in FG end ( 9,800 - 3,100)

6,700)
Materials backflushed from FG to CofGS

00
3)

a) Raw and In process

346,000

346,4

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
Page 3
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
1)
Raw and In Process
100,000
Accounts payable
100,000
2)

60,000

Finished goods
99,850
Raw and In Process
99,850
Materials purchased

100,00

0
Materials in RIP beg. (5,000-500)
Materials in RIP end (5,250-650)
Materials backflushed from RIP
3)

Cost of goods sold

102,850
Finished goods
102,850

4,500
4,650)
99,850

Materials
Materials
Materials
Materials

backflushed from RIP

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

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

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

RIP
FG
End

650

2,500
Beginning

(500)

(3,250)
Increase (decrease)

150

750
Page 3
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

24

6,600
2)
,600

Materials backflushed from RIP to FG

246

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
00
3)

Materials purchased
246,000
RIP beg.
14,500
FG beg.
16,000
Direct labor
98,000
Factory overhead
125,000

247,1

RIP end
( 22,400)
FG end
( 19,800)
Cost of goods sold
457,300
4)

a)
246,000

Raw and in process

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

,700

15

13,100
BEGINNING

( 7,200)

( 8,800)
Increase (Decrease)
4,300

8,500