Question
In addition to the year-end statement of financial position and statement of comprehensive income, the management of Del Mundo Corporation required the controller to prepare
In addition to the year-end statement of financial position and statement of comprehensive income, the management of Del Mundo Corporation required the controller to prepare the statement of cost of goods manufactured. Durin 2020, P361,920 of raw materials were purchased. Operating cost data and inventory account balances for 2020 follow:
Direct Labor (10,430 hours at P9.50 per hour); P99,085
Plant Supervision; 42,500
Indirect Labor (20,280 hours at P6.25 per hour); 126,750
Factory Insurance; 8,100
Factory Supplies; 29,220
Depreciation - Factory Building; 46,200
Depreciation - Factory Equipment; 62,800
Manufacturing Supplier; 9,460
Repairs and Maintenance; 14,980
Selling and Administrative Expenses; 76,480
Raw Materials Inventory, Jan 1, 2020; 26,490
Work in Process Inventory, Jan 1, 2020; 101,640
Finished Goods Inventory, Jan. 1, 2020; 148,290
Raw Materials Inventory, Dec 31, 2020; 24,910
Work in Process Inventory, Dec 31, 2020; 100,400
Finished Goods Inventory, Dec 31, 2020; 141,100
Required:
1. Compute the cost of direct materials used during the year.
2. Compute the total manufacturing cost for the year.
3. Compute the cost of goods manufactured during the year.
4. Prepare the cost of goods manufactured for 2020.
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