50.6k views
0 votes
A firm uses backflush costing to assign product costs to inventory. The firm values inventory using throughput accounting. At the beginning of January, the RIP account has a balance of $0. On January 10, the firm purchases 1,000 lbs of raw materials worth $10,000. At the end of the month, 10 lbs of raw materials (worth $100) remain unused. 50 units were in process ($6 material cost per unit) If you searched for the RIP account in the firm's cost accounting records on January 15, what balance would that account show

User Edi Imanto
by
4.6k points

1 Answer

3 votes

Answer:

$100

Step-by-step explanation:

At the end of 15th January RIP account will have a balance of $100 i.e 10 lbs of raw materials (worth $100) .

User Mspolitaev
by
5.1k points