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Company had the following inventory balances at the beginning and end of November: November 1 November 30 Raw Materials P17,000 P20,000 Finished Goods P50,000 P44,000 Work in Process P 9,000 P11,000 During November, P39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was P8 per direct labor-hour, and it paid its direct labor workers P10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained P4,700 of direct materials cost. The Company incurred P28,000 of actual manufacturing overhead cost during the month and applied P26,400 in manufacturing overhead cost.   The amount of direct labor cost in the November 30 Work in Process inventory was:

Company had the following inventory balances at the beginning and end of November: November 1 November 30 Raw Materials P17,000 P20,000 Finished Goods P50,000 P44,000 Work in Process P 9,000 P11,000 During November, P39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was P8 per direct labor-hour, and it paid its direct labor workers P10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained P4,700 of direct materials cost. The Company incurred P28,000 of actual manufacturing overhead cost during the month and applied P26,400 in manufacturing overhead cost.   The amount of direct labor cost in the November 30 Work in Process inventory was:

Financial & Managerial Accounting
Financial & Managerial Accounting
14th Edition
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter18: Activity-Based Costing
Section: Chapter Questions
Problem 18.3APR: Activity-based and department rate product costing and product cost distortions Black and Blue...
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Company had the following inventory balances at the beginning and end of November:
November 1 November 30
Raw Materials P17,000 P20,000
Finished Goods P50,000 P44,000
Work in Process P 9,000 P11,000
During November, P39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was P8 per direct labor-hour, and it paid its direct labor workers P10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained P4,700 of direct materials cost. The Company incurred P28,000 of actual manufacturing overhead cost during the month and applied P26,400 in manufacturing overhead cost.

 

The amount of direct labor cost in the November 30 Work in Process inventory was:

November 1 November 30 Raw Materials P17,000 P50,000 P 9,000 P20,000 P44,000 P11,000 Finished Goods Work in Process During November, P39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was P8 per direct labor-hour, and it paid its direct labor workers P10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained P4,700 of direct materials cost. The Company incurred P28,000 of actual manufacturing overhead cost during the month and applied P26,400 in manufacturing overhead cost.
Transcribed Image Text:November 1 November 30 Raw Materials P17,000 P50,000 P 9,000 P20,000 P44,000 P11,000 Finished Goods Work in Process During November, P39,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was P8 per direct labor-hour, and it paid its direct labor workers P10 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained P4,700 of direct materials cost. The Company incurred P28,000 of actual manufacturing overhead cost during the month and applied P26,400 in manufacturing overhead cost.
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