Josiah Inc. has provided the following information for 20x5: a. Purchased raw materials on account for...
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Josiah Inc. has provided the following information for 20x5: a. Purchased raw materials on account for P120,000. b. Issued P115,000 in raw materials to production (P22,000 were not traceable to specific jobs). c. Incurred P115,000 in direct labor costs (14,375 hours) and P62,500 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory lease P24,000 (paid in cash); depreciation on equipment P20,000; custodial supplies P7,500 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising P75,000; sales commissions P88,000. f. Applied manufacturing overhead to jobs in process at a rate of P10 per direct labor hour. g. Completed jobs costing a total of P345,000. h. Sold jobs for P425,000 on account. The cost of the jobs was P342,000. i. Closed the Manufacturing Overhead account balance. Compute for the following: 1. 2. 3. 4. 5. What is the Ending Balance of the Work In Process? What are the Total Manufacturing Costs? 351,750 What is the Cost of Goods Sold? (after adjustment of over/under applied Factory 334,250 6,750 What is the over/underapplied Factory Overhead? (indicate whether over or What is the Gross Profit? _90,750 Overhead, assumed to be immaterial) under applied) 7,750 Over Josiah Inc. has provided the following information for 20x5: a. Purchased raw materials on account for P120,000. b. Issued P115,000 in raw materials to production (P22,000 were not traceable to specific jobs). c. Incurred P115,000 in direct labor costs (14,375 hours) and P62,500 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory lease P24,000 (paid in cash); depreciation on equipment P20,000; custodial supplies P7,500 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising P75,000; sales commissions P88,000. f. Applied manufacturing overhead to jobs in process at a rate of P10 per direct labor hour. g. Completed jobs costing a total of P345,000. h. Sold jobs for P425,000 on account. The cost of the jobs was P342,000. i. Closed the Manufacturing Overhead account balance. Compute for the following: 1. 2. 3. 4. 5. What is the Ending Balance of the Work In Process? What are the Total Manufacturing Costs? 351,750 What is the Cost of Goods Sold? (after adjustment of over/under applied Factory 334,250 6,750 What is the over/underapplied Factory Overhead? (indicate whether over or What is the Gross Profit? _90,750 Overhead, assumed to be immaterial) under applied) 7,750 Over
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To compute the requested values well go through each step one by one 1 Ending Balance of Work in Process The ending balance of Work in Process WIP can be calculated by adding the cost of completed job... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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