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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 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

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) .

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User Mspolitaev
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