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
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
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 15E: The books of Petry Products Co. revealed that the following general journal entry had been made at...
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Question
The following information is obtained from the company’s records for 2014:
Total
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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