The Hudy Manufacturing Company uses a Materials and In Process (MIP) inventory account and expensed...
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Accounting
The Hudy Manufacturing Company uses a Materials and In Process (MIP) inventory account and expensed all conversion costs to the cost of goods sold account. At the end of each month, all inventories are counted, their conversion costs components are estimated and inventory account balances are adjusted accordingly. Raw material cost is backflushed from MIP to finished goods. The following information is for the month of April.
Beginning balance of MIP account, including P1,400
of conversion cost P31,000
Raw materials received on credit 367,000
Ending MIP inventory per physical count, including
P1,800 conversion cost estimate 33,000
What is the amount of materials used to be backflushed from MIP to finished goods?
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