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Chris Company showed cost of goods sold of P 4,320,000 in its statement of comprehensive income after its first year of operations. The total manufacturing cost comprised 50% materials used, 30% direct labor incurred, and 20% manufacturing overhead. Goods in process at year-end were 10% of the total manufacturing cost. Finished goods at year-end amounted to 20% of the cost of goods manufactured. What is the amount of the total manufacturing overhead? a. 2,400,000 b. 3,000,000 c. 5,400,000 d. 1,200,000

Chris Company showed cost of goods sold of P 4,320,000 in its statement of comprehensive income after its first year of operations. The total manufacturing cost comprised 50% materials used, 30% direct labor incurred, and 20% manufacturing overhead. Goods in process at year-end were 10% of the total manufacturing cost. Finished goods at year-end amounted to 20% of the cost of goods manufactured. What is the amount of the total manufacturing overhead? a. 2,400,000 b. 3,000,000 c. 5,400,000 d. 1,200,000

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CMA
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Chris Company showed cost of goods sold of P 4,320,000 in its statement of comprehensive income after its first year of operations. The total manufacturing cost comprised 50% materials used, 30% direct labor incurred, and 20% manufacturing overhead. Goods in process at year-end were 10% of the total manufacturing cost. Finished goods at year-end amounted to 20% of the cost of goods manufactured. What is the amount of the total manufacturing overhead?
a. 2,400,000
b. 3,000,000
c. 5,400,000
d. 1,200,000
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