1. Vera Santos Corporation's manufacturing costs were as follows: Prime Costs P560,000 Variable manufacturing overhead costs P80,000 Straight-line depreciation of factory building and equipment P60,000 Factory supervisor's salary (8,000 per month) P96,000 Other fixed factory overhead P40,000 What amount should be considered product cost for external reporting purposes?

1. Vera Santos Corporation's manufacturing costs were as follows: Prime Costs P560,000 Variable manufacturing overhead costs P80,000 Straight-line depreciation of factory building and equipment P60,000 Factory supervisor's salary (8,000 per month) P96,000 Other fixed factory overhead P40,000 What amount should be considered product cost for external reporting purposes?

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 15E: Kenkel, Ltd. uses backflush costing to account for its manufacturing costs. The trigger points are...

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