The comparative inventory data for SAN JOSE Manufacturing Corporation for the year ended December 31, 2014 is
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The comparative inventory data for SAN JOSE Manufacturing Corporation for the year ended December 31, 2014 is summarized below:. What is the cost of goods sold at actual cost?
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a. b. C. d. Materials inventory Work in process inventory Finished goods inventory Direct labor Indirect labor During the year 2014, the corporation completed, among others, the following transactions: Purchases, all on account, direct materials, P2,100,000; indirect materials, P400,000. The total materials requisitioned for use during the year included P360,000 for indirect materials. The payroll for the year was a follows: direct labor, P1,650,000, indirect labor, P550,000. The payroll was vouchered, and analysis disclosed the following details: SSS Phil Health W/H Tax P 80,000 40,000 P Gross P 1,650,000 550,000 January 1 55,000 49,000 45,000 December 31 P 53,000 59,000 47,000 P 40,000 12,500 P 12,000 3,000 HDMF P 38,000 12,000 ECC P 6,000 1,500 e. Other manufacturing expenses vouchered amounted to P920,000, and depreciation charges were P450,000 on plant assets. f. g. Completed goods were transferred to the finished goods warehouse. h. All sales are made on terms 2/10, n/30; billing price is at 150% of cost. i. Manufacturing expenses were applied to production at predetermined rate equal to 150% of direct labor cost. At the end of the year, any overapplied or underapplied manufacturing expense is treated as an adjustment to the cost of goods sold. a. b. C. d. Materials inventory Work in process inventory Finished goods inventory Direct labor Indirect labor During the year 2014, the corporation completed, among others, the following transactions: Purchases, all on account, direct materials, P2,100,000; indirect materials, P400,000. The total materials requisitioned for use during the year included P360,000 for indirect materials. The payroll for the year was a follows: direct labor, P1,650,000, indirect labor, P550,000. The payroll was vouchered, and analysis disclosed the following details: SSS Phil Health W/H Tax P 80,000 40,000 P Gross P 1,650,000 550,000 January 1 55,000 49,000 45,000 December 31 P 53,000 59,000 47,000 P 40,000 12,500 P 12,000 3,000 HDMF P 38,000 12,000 ECC P 6,000 1,500 e. Other manufacturing expenses vouchered amounted to P920,000, and depreciation charges were P450,000 on plant assets. f. g. Completed goods were transferred to the finished goods warehouse. h. All sales are made on terms 2/10, n/30; billing price is at 150% of cost. i. Manufacturing expenses were applied to production at predetermined rate equal to 150% of direct labor cost. At the end of the year, any overapplied or underapplied manufacturing expense is treated as an adjustment to the cost of goods sold.
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ANSWER IS Cost of goods sold COGS refers to the direct costs of producing the goods sold by a compan... View the full answer
Related Book For
Cornerstones of Cost Management
ISBN: 978-1111824402
2nd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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