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CNN Inc. manufactures furniture sets for export and uses the job order costing system in accounting for its costs. The following information is obtained from
CNN Inc. manufactures furniture sets for export and uses the job order costing system in accounting for its costs. The following information is obtained from the accounting books and records for the year ended December 31, 2016:
1. The work in process on January 1 was 10% less than the work in process on December 31.
2. The total manufacturing costs added during 2016 was P1,800,000 based on actual direct labor pesos.
3. The manufacturing overhead applied to process was 72% of the direct labor pesos, and it was equal to 30% of the total manufacturing costs.
4. The costs of goods manufactured, also based on actual direct materials, actual direct labor and applied manufacturing overhead, was P1, 700, 000.
What is the cost of direct materials used?
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