Lawin Company provided the following information: Work-in process beginning P 30,000 Work-in-process ending 40,000 Direct labor 60,000 Factory Overhead 90,000 Cost of goods manufactured 200,000 What is the amount of direct materials used? Group of answer choices P 60,000 P 200,000 P 70,000 P 50,000

Lawin Company provided the following information: Work-in process beginning P 30,000 Work-in-process ending 40,000 Direct labor 60,000 Factory Overhead 90,000 Cost of goods manufactured 200,000 What is the amount of direct materials used? Group of answer choices P 60,000 P 200,000 P 70,000 P 50,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Question

Lawin Company provided the following information:

Work-in process beginning P 30,000

Work-in-process ending 40,000

Direct labor 60,000

Factory Overhead 90,000

Cost of goods manufactured 200,000

What is the amount of direct materials used?

Group of answer choices

P 60,000

P 200,000

P 70,000

P 50,000

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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