Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For Cost Accounting: Red Company uses normal costing. During the year ended December 31, 2019, the following information were made available: Total manufacturing costs incurred

image text in transcribedimage text in transcribedimage text in transcribed

For Cost Accounting:

  1. image text in transcribedimage text in transcribedimage text in transcribed
Red Company uses normal costing. During the year ended December 31, 2019, the following information were made available: Total manufacturing costs incurred during the year, P2,200,000; Cost of goods manufactured amounted to P1,940,000; Factory Overhead is applied to production at 80% of direct labor cost; Applied Factory Overhead during the year amounted to 30% of total manufacturing cost; Beginning work-in-process inventory was 75% of the work-in-process at the end. Compute for the cost of direct materials used for the year ended December 31, 2019.The following costs were incurred during the year by Hopefully Company: Depreciation of factory machines P24,000 Oil used to lubricate factory machines 12,000 Promotional expenses 28,000 Raw materials used 350,000 Repair of factory machines 49,000 Salary of factory superintendent 60,000 Wages of factory workers 120,000 Salary of factory clerk 40,000 Transportation cost of salesmen 38,000 Packaging materials in the store 26,000 Gas/oil expenses of the general manager 80,000 Product warranty expense 33,000 Compute for the total product cost.For producing 200 units of product, a company uses $60,000 of direct materials, pays $70,000 of direct labor and incurs P20,000 and $60,000 variable overhead and fixed overhead, respectively. Compute the product unit cost assuming that 450 units are produced

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

11th Edition

978-0132568968, 9780132568968

More Books

Students also viewed these Accounting questions

Question

What is a multivariate data set?

Answered: 1 week ago

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago