Information during current month

Production in units, 25,000

Raw Materials used, P500,000 of which P50,000 is indirect

Factory labor hours utilized, 2,000 hours. This include 200 hours worked as overtime. The regular rate is P50 per hour and the overtime premium is 30%.

Factory overhead applied to the job is P2 per unit plus P80,000 per month

Selling expenses, P1 per unit plus P65,000 per month

Administrative expenses, P2 per unit plus P80,000 per month

Sales for the current month, 22,000 units at 40% mark-up on cost.

Compute for the cost of goods sold for the period.

Compute for the net income or loss from operation.

PS. Can you look if I'm correct. Thank you,, just need some assurance if I'm doing it right.

On December 31, the physical inventory of raw materials was 5,000 units at P25 per unit.

Direct materials requisitioned were 25,000 units: 5,000 units @P20; 8,000 units @ 22; 7,000 units @ 24; 5,000 @ 25. FGH corporation uses only two materials account, direct materials and factory supplies. Factory supplies requisitioned during the period amounted to P5,250.

During the period, FGH corporation returned 2 units @ P24, defective units.

1 unit was return to the stockroom @P25.

Assuming there is no inventory beginning, determine the amount of direct materials purchased for the period.

5000@20 + 8000 @22 +7000@24 + 10,000 @25 = 694,000 ??

or should I include the 2 units @ 24 to have 694,048

Perpetual system, FIFO method.

1. Purchased raw materials on account, 5,000 units @ P100 on account. The company also paid freight of 10,000 for the shipment.

2. Recorded requisition for the month, 75% of the total raw materials available for use, of which, 10% is indirect materials.

3. Excess materials return to the storeroom: direct materials, P5,100 of which and indirect materials, P800.

4. Materials returned to the vendor two days after the purchase, 40 units, due to defective quality

I'm stuck on 3 and 4. I don't know whether I should convert it into units plus the freight just to have a total of 5,900.

The entry is: RM 5,900

WIP 5,100

MOH 800

510,000/5000 = P102 per unit.

However, when I put it into ledger using FIFO method, in the column of issuance, it should be 57.84 @102 to have 5,899.68 or 5,900 ?? I included the freight.

Also, in no. 4, in the purchase column, should it be 40@ 102, and the entry is dr AP 4080 and cr RM 4080?

Then the rm inventory balance should be 1267.84 @102.