The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year. Factory overhead costs incurred during the year: P 1,600 2,600 5,100 13,000 2,500 Property taxes – factory Utilities - factory Indirect labor Depreciation - factory Insurance - factory Total Actual FOH costs P 24,800 Other costs incurred during the year: P 15,000 22,000 Purchases of raw materials Direct labor cost Inventories: Raw materials, beginning Raw materials, ending Work-in-process, beginning Work-in-process, ending P 5,000 4,400 3,500 4,500 The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was P4.00 per machine-hour; a total of 6,000 machine-hours were recorded for the year. Compute for the cost of goods manufactured for the year.

The following cost data relate to the manufacturing activities of the Kamas Company during the most recent year. Factory overhead costs incurred during the year: P 1,600 2,600 5,100 13,000 2,500 Property taxes – factory Utilities - factory Indirect labor Depreciation - factory Insurance - factory Total Actual FOH costs P 24,800 Other costs incurred during the year: P 15,000 22,000 Purchases of raw materials Direct labor cost Inventories: Raw materials, beginning Raw materials, ending Work-in-process, beginning Work-in-process, ending P 5,000 4,400 3,500 4,500 The company uses a predetermined overhead rate to charge overhead cost to production. The rate for the year just completed was P4.00 per machine-hour; a total of 6,000 machine-hours were recorded for the year. Compute for the cost of goods manufactured for the year.

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 17E: Davis Co. uses backflush costing to account for its manufacturing costs. The trigger points are the...

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