X Corp obtained the balances of different accounts at the end of 2010 as follows: Over-applied overhead P 22,000, Work in Process P 128,000, Finished Goods P 32,000; Cost of goods Sold P 240,000. The materiality threshold is 5% of the combined ending balances of all accounts containing overhead. What is the adjusted Cost of Goods Sold?

66. Per record, total payroll is 1,000,000, net of deductions from employee's salary which includes taxes of 40,000, Pagibig / SSS contributions of 55,000 and Philhealth. It shows that company's contributions (employer's contribution) to Pagibig and SSS totaled P 25,000 and 30,000, respectively. Total Phil health contributions remitted to PHILHEALTH amounted to 100,000. 80% of the company's employees are working in the production area and the remaining are selling / admin personnel. 10% of the production employees are indirect laborer. Based on the given data, what is the direct labor cost?

Answer rating: 100% (QA)

To calculate the adjusted Cost of Goods Sold we first need to determine the materiality threshold Th... View the full answer