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: PHIC Earnings P220,000 Таx SS 13,480| 5,000 1,160 Direct 24,000 Indirect 40,000 2,000 800 Selling 50,000 5,000 2,500 1,230 70,000 [e] Depreciation of factory machine is P119,000 [f] Factory utilities costs incurred, P24,000. [g] Overhead was applied to production using 47,000 Admin 13,000 6,850 2,430 hours. [h] P700,000 worth of goods were completed. (i) Paid utilities. (G] 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: PHIC Earnings P220,000 Таx SS 13,480| 5,000 1,160 Direct 24,000 Indirect 40,000 2,000 800 Selling 50,000 5,000 2,500 1,230 70,000 [e] Depreciation of factory machine is P119,000 [f] Factory utilities costs incurred, P24,000. [g] Overhead was applied to production using 47,000 Admin 13,000 6,850 2,430 hours. [h] P700,000 worth of goods were completed. (i) Paid utilities. (G] Sold 75% of completed goods at 60% above cost. How much is the cost of goods manufactured?
Chapter4: Job Order Costing
Section: Chapter Questions
Problem 2PB: Rulers Company is a neon sign company that estimated overhead will be $60,000, consisting of 1,500...
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