1. Incomplete accounts of the Janice Co. appear as follows on January 31.

Materials inventory

Bal.P 15,000

Purchases35,000

Work in process

Bal.P0

Materials20,000

Labor?

OH?

Credit: Cost of Goods ManufacturedP 40,000

Finished goods

Bal.P 10,000

Cost of Goods Manufactured 40,000

Credit: Cost of Goods SoldP 20,000

Additional information

• There were 5,500 direct labor hours at the rate of P8.00 per direct labor hour
• Overhead is applied at the rate of P4.00 per direct labor hour

The January 31 of materials inventory should be

a. 20,000b. 25,000c. 30,000d. 50,000