At the beginning of the year, Primer Manufacturing Company had the following balances in its inventory accounts: Raw Materials Php 100,000.00 Work in Process 232,000.00 Finished Goods 720,000.00 The work in process subsidiary ledger shows the following balances: Job 500 consists of Materials, Php 22,000.00, direct labor Php 48,000.00, and factory overhead of Php 72,000.00. Job 600 consist of Php 15,000.00 Materials, 30,000.00 of direct labor, and 45,000.00 factory overhead. * The finished goods inventory contains Job 400 with a total cost of P320,000 and Job 300 with a total cost of P400,000. Summary of transactions for the 3-months ended Sept. 20, of the current year are given below: 4 Raw materials purchased on cash, P450,000. b. Materials issued to production, P400,000, distributed as follows: Job. 500 (20%), Job 600 (25%), Job 700 (30%), Job 800(15%) and the balance represent factory supplies consumed. S. Labor costs for the period: Direct labor - P200,000 distributed as follows: Job 500 (25%); Job 600 (30%); Job 700(20%) and the balance to Job 800 Indirect labor - P75,000 Selling and administrative expenses - P125,000. d. Administrative expenses and Manufacturing overhead incurred other than indirect materials and indirect labor follows: P30,000 60,000 12,000 5,000 Factory insurance expired Factory rent Factory maintenance Office equipment maintenance Electricity costs, 60% to factory, 40% to selling and administration Taxes & Licenses, 60% to factory, 40% to selling & administration Miscellaneous factory costs 60,000 20,000 20,000 Additional information: a. Normal Costing: Overhead is applied to the job at the same rate used in the prior period and the overhead variance is closed to cost of sales. b. Only Job no. 700 is unfinished at the end of the period. Job 600 is in the warehouse and all other were sold at production cost plus% mark- up on a 30- day term.
At the beginning of the year, Primer Manufacturing Company had the following balances in its inventory accounts: Raw Materials Php 100,000.00 Work in Process 232,000.00 Finished Goods 720,000.00 The work in process subsidiary ledger shows the following balances: Job 500 consists of Materials, Php 22,000.00, direct labor Php 48,000.00, and factory overhead of Php 72,000.00. Job 600 consist of Php 15,000.00 Materials, 30,000.00 of direct labor, and 45,000.00 factory overhead. * The finished goods inventory contains Job 400 with a total cost of P320,000 and Job 300 with a total cost of P400,000. Summary of transactions for the 3-months ended Sept. 20, of the current year are given below: 4 Raw materials purchased on cash, P450,000. b. Materials issued to production, P400,000, distributed as follows: Job. 500 (20%), Job 600 (25%), Job 700 (30%), Job 800(15%) and the balance represent factory supplies consumed. S. Labor costs for the period: Direct labor - P200,000 distributed as follows: Job 500 (25%); Job 600 (30%); Job 700(20%) and the balance to Job 800 Indirect labor - P75,000 Selling and administrative expenses - P125,000. d. Administrative expenses and Manufacturing overhead incurred other than indirect materials and indirect labor follows: P30,000 60,000 12,000 5,000 Factory insurance expired Factory rent Factory maintenance Office equipment maintenance Electricity costs, 60% to factory, 40% to selling and administration Taxes & Licenses, 60% to factory, 40% to selling & administration Miscellaneous factory costs 60,000 20,000 20,000 Additional information: a. Normal Costing: Overhead is applied to the job at the same rate used in the prior period and the overhead variance is closed to cost of sales. b. Only Job no. 700 is unfinished at the end of the period. Job 600 is in the warehouse and all other were sold at production cost plus% mark- up on a 30- day term.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 15E: The books of Petry Products Co. revealed that the following general journal entry had been made at...
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1.Based on the data above. What is the ending balance of Finished Goods?
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