1.

The Rapidan Manufacturing Company produces only for customer order, and most work is
shipped within 36 hours of receipt of an order. The company uses a raw and in process (RIP)
inventory account and expenses all conversion costs to the costs to the cost of goods sold
account. Work is shipped immediate upon completion, so there is no finished goods account. At
the end of each month inventory is counted, its conversion cost component is estimated, and
the RIP account balance is adjusted accordingly. Raw material cost is backflushed from RIP to
Cost of Goods sold. The following information is for May:
Beginning Balance of RIP account, including, P1,300 of conversion cost P12,300
Raw materials received on credit 246,000
Ending RIP inventory per physical count, including P2,100 conversion
Cost estimate 12,100

Required: Prepare the 3 journal entries involving the RIP account

2. The Waynesboro Manufacturing Company uses a Raw and in Process inventory account
and expenses all conversion costs to the cost of goods sold account. At the end of each
month, all inventories are counted. Their conversion cost components are estimated
and inventory account balances are adjusted accordingly. Raw Materials cost is
backflushed from RIP to Finished Goods. The following information is for April:
Beginning balance of RIP account, including P1,400 of conversion cost P31,000
Raw materials received on credit 367,000
Ending RIP Inventory per physical count, including P1,800
Conversion cost estimate 33,000
Prepare the three journal entries involving the RIP account.

3. Cubsville Manufacturing has a cycle time of less than a day, uses a raw and in process
(RIP) account, and expenses all conversion costs to Cost of Goods Sold. At the end of
each month, all inventories are counted, their conversion cost components are
estimated, and inventory account balances are adjusted accordingly. Raw materials cost
is backflushed from RIP to Finished Goods. The following information is for May
Beginning balance of RIP account, including, P2,300 of conversion cost P21,300
Beginning balance of finished goods account, including P6,500 of
Conversion cost 22,500
Raw materials received on credit 456,000
Ending, RIP inventory per physical count, including P2,100 conversion
Cost estimate 22,100
Ending finished goods inventory per physical count, including P5,000
Conversion cost estimate 15,000
Prepare the entries using backflush costing