Jose Corp. Makes bottles using the latest automated technology. The company applies FOH cost to products on the basis of machine hours. The following are estimate used to determine factory overhead rate at the start of the year. Machine hours 150,000 Factory Overhead Cost 1,800,000 The company cost records shows the following actual cost incurred for the year, Machine hours 120,000 Factory Overhead Cost 1,700,000 Raw Materials 60,000 Work in Process (Includes FOH applied of P72,000) 200,000 Finished Goods (includes FOH applied of P360,000) 1,000,000 Cost of Goods Sold (includes FOH applied of P1,008,000) 2,800,000 Assume the variance is material, what is the adjustment of the Cost of Goods Sold?
Jose Corp. Makes bottles using the latest automated technology. The company applies FOH cost to products on the basis of machine hours. The following are estimate used to determine factory overhead rate at the start of the year.
Machine hours 150,000
The company cost records shows the following actual cost incurred for the year,
Machine hours 120,000
Factory Overhead Cost 1,700,000
Raw Materials 60,000
Work in Process (Includes FOH applied of P72,000) 200,000
Finished Goods (includes FOH applied of P360,000) 1,000,000
Cost of Goods Sold (includes FOH applied of P1,008,000) 2,800,000
Assume the variance is material, what is the adjustment of the Cost of Goods Sold?
Step by step
Solved in 3 steps
