The following information is obtained from the company’s records for 2014:  Total manufacturing costs, P8,000,000  Cost of finished goods manufactured, P7,920,000  Manufacturing overhead applied, P3,600,000  Manufacturing overhead was applied to production at a rate of 200% of direct labor costs  The peso amount of work in process inventory on January 1, 2014 was P320,000. What is the total direct labor cost in 2014? a. P1,800,000 b. P1,500,000 c. P1,700,000 d. P3,600,000

Principles of Cost Accounting
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ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
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Problem 15E: The books of Petry Products Co. revealed that the following general journal entry had been made at...
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The following information is obtained from the company’s records for 2014:
 Total manufacturing costs, P8,000,000
 Cost of finished goods manufactured, P7,920,000
 Manufacturing overhead applied, P3,600,000
 Manufacturing overhead was applied to production at a rate of 200% of direct labor
costs
 The peso amount of work in process inventory on January 1, 2014 was P320,000.
What is the total direct labor cost in 2014?
a. P1,800,000
b. P1,500,000
c. P1,700,000
d. P3,600,000

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