Problem 6

Donna Company submits the following data for May 2013

Direct labor cost P80, 000

Purchases P100, 000

Factory overhead Applied at 150% of direct labor cost

Inventories May 1 May 31

Finished goods. P45, 000 P24, 000

Work in Process P25, 800 P18, 000

Materials P22, 000P 25, 000

Actual factory overhead amounts to P80,000.

Required:

1.How much is the Companys Cost of goods sold adjusted?

2.How much is the amount transferred out from Work in process and transferred in to Finished Goods?

3.How much is the amount transferred out from Finished Goods?

4.How much is the adjustment posted on the Cost of Goods sold Account? (indicate if debit or credit)

5.If there are 1,000 units sold, how much is the cost per unit of product?