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Ivan Corporation has an incomplete data due to a fire in the administrative office; the accounting records in February of the current year were
Ivan Corporation has an incomplete data due to a fire in the administrative office; the accounting records in February of the current year were partially destroyed. The accountant has been able to piece together the following information from the ledger. Raw Materials Beg. 648,000 Beg. Work in Process 129,600 DM DL 729,000 FOH Finished Goods Cost of Goods Sold Beg. 567,000 Accounts Payable Factory Overhead 194,400 Beg. 972,000 Wages Payable Accounts Receivable Beg. 129,600 24,300 Upon examining the various source documents, the accountants were able to collect the following additional information: A. Sales revenue in February was 150% of cost of goods sold. All sales are on account. B. Collections of accounts receivable during February amounted to P3,321,000. C. The budgeted factory overhead for the current year is P11,664,000. D. Factory overhead applied using a predetermined rate based on direct labor hours. E. The budgeted direct labor cost for the current year is P15,552,000. The direct labor rate is P108 per hour. F. The accounts payable balance on February 28 was P16,200. Only purchases of raw materials are credited to accounts payable. A payment of P1,312,200 was made on February 14. G. The February 28 balance in finished goods inventory was P81,000. H. Payments of P1,287,900 were made to direct labor employees during February. The January 31 balance in the wages payable account was P16,200. I. The actual factory overhead for February was P970,000. J. February cost of goods sold amounted to P2,916,000. K. The product still in process on February revealed that so far these items have required 810 direct labor hours and P332,100 of direct materials. Required: Compute the following amounts: 1. Raw materials used during February 2. Beginning balance of raw materials 3. Raw materials purchased during February 4. Work in process end in February 5. Direct labor cost charged to production. 6. Applied Factory overhead 7. Cost of goods manufactured during February 8. Total sales revenue 9. Accounts Receivable ending balance 10. Factory overhead variance.
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