CHAPTER 5 - JUST IN TIME AND BACKFLUSH ACCOUNTING

TRUE/FALSE
1. True
2. True
3. False
4. True
5. True

6. True
7. True
8. True
9. True
10. False

Problem 1 - AJE Corporation

1)
Raw and In Process
Accounts Payable

16,000

2)

Cost of goods sold

Accrued payroll
FO Applied

32,000

Finished goods
Raw and In Process

13,500

3)

Raw and In Process

Cost of goods sold
4)

Cost of goods sold

Finished goods
Finished goods
Cost of goods sold

16,000
15,000
17,000
13,500
1,000
1,000
12,700
12700
1,700
1,700

Problem 2 Magnolia Corporation

CORRECTION: Direct labor cost P 350,000; Factor overhead

P380,000
1)
Raw and In Process
444,000
Accounts payable
444,000
2)

Finished goods
Raw and In process
443,000

443,000

Purchases
444,000
Mat. In RIP beg (23,400-2,400)
21,000
Mat. In RIP end (25,600-3,600)
( 22,000)
Mat. Content of FG
443,000

Cost of goods sold

Accrued payroll
FO Applied
Page 2
3)
Cost of goods sold
Finished goods
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)

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

Raw and In Process

Cost of goods sold
Conversion cost in RIP end
Conversion cost in RIP beg
Adjustment

5)

730,000
350,000
380,000

1,200
1,200
3,600
( 2,400)
1,200

Cost of goods sold

Finished goods
Conversion cost in FG end
Conversion cost in FG beg
Adjustment

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

Problem 3 Pocahontas Manufacturing Company

1.
Materials purchased
Materials in RIP beg (11,000 1,200)
Materials in RIP end (12,400 1,700)
Materials backflushed from RIP to FG

346,000
9,800
( 10,700)
345,100

2.

Materials backflushed from RIP to FG

Materials in FG beg ( 12,000 4,000)
Materials in FG end ( 9,800 - 3,100)
Materials backflushed from FG to CofGS

345,100
8,000
( 6,700)
346,400

3)

a) Raw and In process

Accounts payable

346,000
346,000

b) Cost of goods sold

Accrued payroll
FO Applied

250,000
100,000
150,000

c) Finished goods
Raw and In Process

345,100
345,100

d) Cost of goods sold

Finished goods

346,400
346,400

Page 3
e) Raw and In Process
Cost of goods sold
Finished goods
End
Beginning
Increase (decrease(

500
400
900
RIP
1,700
(1,200)
500

FG
3,100
(4,000)
( 900)

Problem 4 Barbie Mfg. Company

Additional information Direct labor 80,000; factory overhead 60,000
1)
Raw and In Process
100,000
Accounts payable
100,000
2)

Finished goods
Raw and In Process

99,850
99,850

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

Cost of goods sold

Finished goods

102,850
102,850

Materials backflushed from RIP

Materials in FG beg. (11,250-3.250)
Materials in FG end ( 7,500-2,500)
Materials backflushed from CofGS
4)

5)

100,000
4,500
( 4,650)
99,850

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

Cost of goods sold

Accrued payroll
FO Applied

140,000
80,000
60,000

Raw and in process

Cost of goods sold
Finished goods

150
600
750
RIP

FG

End
Beginning
Increase (decrease)

650
(500)
150

2,500
(3,250)
750

Page 3
Problem 5 Chiz Manufacturing Company
1)

Materials purchased
Materials in RIP beg. ( 14,500-7,200)
Materials in RIP end ( 22,400-15,700)
Materials backflushed from RIP to FG

246.000
7,300
( 6,700)
246,600

2)

Materials backflushed from RIP to FG

Materials in FG beg. (16,000-8,800)
Materials in FG end (19,800-13,100)
Materials backflushed from FG to CofGS

246,600
7,200
( 6,700)
247,100

3)

Materials purchased
RIP beg.
FG beg.
Direct labor
Factory overhead
RIP end
FG end
Cost of goods sold

246,000
14,500
16,000
98,000
125,000
( 22,400)
( 19,800)
457,300

a)

Raw and in process

Accounts payable

246,000
246,000

b)

Finished goods
Raw and in process

246,600
246,600

c)

Cost of goods sold

Finished goods

247,100
247,100

d)

Cost of goods sold

Accrued payroll
FO Applied

223,000

4)

e)

98,000
125,000

Raw and in process

Finished goods
Cost of goods
END

8,500
4,300
12,800
RIP
15,700

FG
13,100

BEGINNING
Increase (Decrease)

( 7,200)
8,500

( 8,800)
4,300