A firm uses backflush costing to assign product costs to inventory. The firm values inventoryusing throughput accounting.At the beginning of February, the RIP account has a balance of $450. On February 10, the firmpurchased 2,000 lbs of raw materials worth S20,000. At the end of the month, 30 lbs of rawmaterials (worth $300) remain unused. 100 units were in process ($10 material cost per unit)If you searched for the RIP account in the firm's cost accounting records on February 15, whatbalance would that account show?a. $750b. $20,000c. $450

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Description: A firm uses backflush costing to assign product costs to inventory. The firm values inventoryusing throughput accounting.At the beginning of February, the RIP account has a balance of $450. On February 10, the firmpurchased 2,000 lbs of raw material

Raw material can be defined as the basic material that is used for manufacturing the finished goods…

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A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting. At the beginning of February, the RIP account has a balance of $450. On February 10, the firm purchased 2,000 Ibs of raw materials worth $20,000. At the end of the month, 30 lbs of raw materials (worth $300) remain unused. 100 units were in process ($10 material cost per unit) If you searched for the RIP account in the firm's cost accounting records on February 15, what balance would that account show? a. $750 b. $20,000 c. $450

A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting. At the beginning of February, the RIP account has a balance of $450. On February 10, the firm purchased 2,000 Ibs of raw materials worth $20,000. At the end of the month, 30 lbs of raw materials (worth $300) remain unused. 100 units were in process ($10 material cost per unit) If you searched for the RIP account in the firm's cost accounting records on February 15, what balance would that account show? a. $750 b. $20,000 c. $450

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter2: Accounting For Materials

Section: Chapter Questions

Problem 13P: Webster Company uses backflush costing to account for its manufacturing costs. The trigger points...

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