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A corporation is manufacturing a product which uses a job cost order system with the following info as of July 1, 2021: Work in process

A corporation is manufacturing a product which uses a job cost order system with the following info as of July 1, 2021:

Work in process P 110,710

Finished Goods 120,000

Direct Materials inventory 148,600

In analyzing the job order cost sheets, the records disclosed that the following activity occurred during the month of June 2020:

Purchased direct materials 160,000

Freight in 80,000

Freight out 10,000

Amortization of Patent 25,000

Other selling expenses 40,000

Advertising expense 15,000

Factory Heat, light and water 50,000

Utilities expense 30,000

Other general and admin expenses 35,000

Depreciation of machinery 12,900

Superintendence 100,000

Commission Expense 14,000

Depreciation of office furniture 15,000

Direct labor worked 9,900 hours at 15/hour

At the end of June 2021, inventories of work in process was P 124, 200

Inventory of materials 151,000

Finished goods inventory 125,00

Additional information:

Sales 1, 980,000

Sales returns and allowances 10,000

Cash 40,000

Accounts receivable 20,000

Required:

  1. Conversion cost
  2. Prime Cost
  3. Total manufacturing cost
  4. Cost of goods manufactured
  5. Cost of goods sold
  6. Gross profit

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