1. How much is the cost of goods manufactured? * JR Company uses the normal cost...

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1. How much is the cost of goods manufactured? * JR Company uses the normal cost system. The company applies overhead using a predetermined overhead rate using machine hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and incur P176,000 in factory overhead costs. Following are transactions for the month of February. [a] Purchased raw materials from CZ company, P555,000. Terms 2/10,n/60. [b] Materials were requisitioned for production, P431,000 direct and 13,000 indirect. [c] Returned materials to CZ company, P5,000 (gross) on the 3rd day after purchase. [d] Paid payroll for the week: Direct Indirect Selling Admin Earnings P220,000 40,000 50,000 70,000 Tax 24,000 SSS PHIC 13,480 2,000 1,160 5,000 800 5,000 2,500 1,230 13,000 6,850 2,430 [e] Depreciation of factory machine is P119,000 [f] Factory utilities costs incurred, P24,000. [g] Overhead was applied to production using 47,000 hours. [h] P700,000 worth of goods were completed. [i] Paid utilities. [j] Sold 75% of completed goods at 60% above cost. 2. How much is total cost of goods manufactured? * A company uses job order costing. At the beginning of February, two jobs were in process: Materials Direct Labor Applied Factory Overhead Job 769 Job 772 P4,000 2,000 3,000 P1,400 600 900 There was no inventory of finished goods on February 1. During the month, Jobs 773, 774, 776, 778 and 779 were started. Materials requisitions for February totaled P26,000, direct labor cost, P20,000 and actual factory overhead, P32,000. Factory overhead is applied at a rate of 150% of direct labor cost. The only job still in process at the end of February is job 779, with a materials cost of P2,800 and direct labor cost of P1,800. Job 776, the only finished job on hand at the end of the month, has a total cost of P4,000. 1. How much is the cost of goods manufactured? * JR Company uses the normal cost system. The company applies overhead using a predetermined overhead rate using machine hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and incur P176,000 in factory overhead costs. Following are transactions for the month of February. [a] Purchased raw materials from CZ company, P555,000. Terms 2/10,n/60. [b] Materials were requisitioned for production, P431,000 direct and 13,000 indirect. [c] Returned materials to CZ company, P5,000 (gross) on the 3rd day after purchase. [d] Paid payroll for the week: Direct Indirect Selling Admin Earnings P220,000 40,000 50,000 70,000 Tax 24,000 SSS PHIC 13,480 2,000 1,160 5,000 800 5,000 2,500 1,230 13,000 6,850 2,430 [e] Depreciation of factory machine is P119,000 [f] Factory utilities costs incurred, P24,000. [g] Overhead was applied to production using 47,000 hours. [h] P700,000 worth of goods were completed. [i] Paid utilities. [j] Sold 75% of completed goods at 60% above cost. 2. How much is total cost of goods manufactured? * A company uses job order costing. At the beginning of February, two jobs were in process: Materials Direct Labor Applied Factory Overhead Job 769 Job 772 P4,000 2,000 3,000 P1,400 600 900 There was no inventory of finished goods on February 1. During the month, Jobs 773, 774, 776, 778 and 779 were started. Materials requisitions for February totaled P26,000, direct labor cost, P20,000 and actual factory overhead, P32,000. Factory overhead is applied at a rate of 150% of direct labor cost. The only job still in process at the end of February is job 779, with a materials cost of P2,800 and direct labor cost of P1,800. Job 776, the only finished job on hand at the end of the month, has a total cost of P4,000.