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  • Backflush-Costing Problem

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    pam pam
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    This document outlines a 4 stage process involving inventory accounts. Stage 1 involves tracking raw material inventory and accounts payable. Stage 2 focuses on controlling conversion costs across various accounts. Stage 3 calculates finished goods inventory using raw materials, work in process, and applied conversion costs. Stage 4 determines cost of goods sold by using finished goods inventory and applied conversion costs, which is then reconciled to the conversion cost control account.

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    This document outlines a 4 stage process involving inventory accounts. Stage 1 involves tracking raw material inventory and accounts payable. Stage 2 focuses on controlling conversion costs across various accounts. Stage 3 calculates finished goods inventory using raw materials, work in process, and applied conversion costs. Stage 4 determines cost of goods sold by using finished goods inventory and applied conversion costs, which is then reconciled to the conversion cost control account.

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    14 views2 pages

    Backflush-Costing Problem

    Uploaded by

    pam pam
    This document outlines a 4 stage process involving inventory accounts. Stage 1 involves tracking raw material inventory and accounts payable. Stage 2 focuses on controlling conversion costs across various accounts. Stage 3 calculates finished goods inventory using raw materials, work in process, and applied conversion costs. Stage 4 determines cost of goods sold by using finished goods inventory and applied conversion costs, which is then reconciled to the conversion cost control account.

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    of 2

    Stage 1 RIP Inventory

    Accounts Payable

    Conversion cost control


    Various Accounts/AA

    Stage 3 Finished Goods Inventory


    RIP Inventory
    Applied Conversion Cost

    Stage 4 Cost of Goods Sold


    Finished Goods Inventory

    Cost of Goods Sold


    Applied Conversion Cost
    Conversion Cost Control
    195,000
    195,000

    126,000
    126,000

    310,000
    190,000
    120,000

    306,900
    306,900

    6,000
    120,000
    126,000

    RIP Inventory
    195,000 190,000
    5,000

    Finished Goods Inventory


    310,000 306,900
    3,100

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