Lava Pocket, LLC uses backflush costing to assign product costs to inventory and values inventory...
50.1K
Verified Solution
Link Copied!
Question
Accounting
Lava Pocket, LLC uses backflush costing to assign product costs to inventory and values inventory using direct costing. All actual amounts are equal to budgeted amounts. The firm has NO fixed overhead.
Total DM: $500,000 Total DL: $150,000 Variable overhead: $100,000 Total units completed and in process: 2,000 units
Lava Pocket, LLC has 350 units in finished goods inventory and 250 units in process. The firm does a count of raw materials inventory and finds $31,250 of raw materials inventoryon hand at the end of the period. Which of the following is the cost backflushed to the RIP account (this firm uses a RIP account, a Conversion Costs account, and a Finished Goods account)?
a.
$125,000
b.
$62,500
c.
Cannot be determined from this information.
d.
$93,750
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
