Question
VAT Corporation manufactures rattan furniture sets for export and uses the Job order cost system in accounting for its costs. You obtained from the corporation's
- VAT Corporation manufactures rattan furniture sets for export and uses the Job order cost system in accounting for its costs. You obtained from the corporation's books and records the following for the year ended December 31, 2015:
The work in process inventory on January 1 was 20% less than the work in process inventory on December 31.
The total manufacturing costs added during 2015 was P900,000 based on actual direct materials and direct labor but with manufacturing overhead applied on actual direct labor pesos.
The manufacturing overhead applied to process was 72% of the direct labor pesos, and it was equal to 25% of the total manufacturing costs.
The cost of goods manufactured, also based on actual direct materials, actual direct labor and applied manufacturing overhead, was P850,000.
The cost of direct materials used and the work-in-process inventory on December 31,2015:
Direct materials Work-in-process
Used Inventory
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