How much is the cost of goods manufactured? JR Company uses the normal cost system. The company applies overhead using a predetermined overhead rate using machine hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and incur P176,000 in factory overhead costs. Following are transactions for the month of February. [a] Purchased raw materials from CZ company, P555,000. Terms 2/10,n/60. (b] Materials were requisitioned for production, P431,000 direct and 13,000 indirect. [c] Returned materials to CZ company, P5,000 (gross) on the 3rd day after purchase. [d] Paid payroll for the week: Earnings Тах P220,000 24,000 2,000 5,000 SSS PHIC 13,480 5,000 Direct Indirect 40,000 Selling Admin [e] Depreciation of factory machine is P119,000 (f) Factory utilities costs incurred, P24,000. (8] Overhead was applied to production using 47,000 hours. 1,160 2,500 800 50,000 1,230 70,000 13,000 6,850 2,430 (h] P700,000 worth of goods were completed. (i) Paid utilities. (il Sold 75% of completed goods at 60% above cost
How much is the cost of goods manufactured? JR Company uses the normal cost system. The company applies overhead using a predetermined overhead rate using machine hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and incur P176,000 in factory overhead costs. Following are transactions for the month of February. [a] Purchased raw materials from CZ company, P555,000. Terms 2/10,n/60. (b] Materials were requisitioned for production, P431,000 direct and 13,000 indirect. [c] Returned materials to CZ company, P5,000 (gross) on the 3rd day after purchase. [d] Paid payroll for the week: Earnings Тах P220,000 24,000 2,000 5,000 SSS PHIC 13,480 5,000 Direct Indirect 40,000 Selling Admin [e] Depreciation of factory machine is P119,000 (f) Factory utilities costs incurred, P24,000. (8] Overhead was applied to production using 47,000 hours. 1,160 2,500 800 50,000 1,230 70,000 13,000 6,850 2,430 (h] P700,000 worth of goods were completed. (i) Paid utilities. (il Sold 75% of completed goods at 60% above cost
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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