11. The Combate Corporation uses the raw materials and in process (RIP) inventory account. At...
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11. The Combate Corporation uses the raw materials and in process (RIP) inventory account. At the end of each month, all inventories are counted, their conversion components are estimated, and inventory account balances are adjusted accordingly. Raw materials are back-flushed from RIP account to finished goods. The following data is for the month of May:
Raw materials purchasesP5,100,000
Ending balance of RIP account314,250
Conversion cost incurred36,000
Conversion cost allocated39,750
Beginning balance of RIP account290,250
The amount of conversion costs to be back-flushed to Finished Goods is:
c. P75,750
a. P36,000
d. P24,000
b. P39,750
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