Question
1.) The XYZ Company uses a predetermined overhead rate. XYZ prepared the following budget at the beginning of the year: Direct Labor CostP12,000 Factory OverheadP25,000
1.) The XYZ Company uses a predetermined overhead rate. XYZ prepared the following budget at the beginning of the year:
Direct Labor CostP12,000
Factory OverheadP25,000
Direct labor hours9,000
Machine hours1,500
During the month of January, the cost sheet of order number 100 indicates P20 of raw materials, P50 of direct labor, 10 hours of direct labor, and 5 machine hours. Order number 100 consists of 49 units of product. XYZ applies overhead based on direct labor cost.
1.What amount of overhead should be applied to order number 100?
2.) The following events took place at the Dream Company for the current year.
Purchased P120, 000 in direct materials
Incurred labor costs as follows
Direct labor, P72, 000
Supervisor labor, P26, 000
Purchased manufacturing equipment for P94, 000
Other manufacturing overhead (excluding supervisor labor) was P88, 000
Transferred 80% of the materials to the manufacturing assembly line
Completed work on 70% of the goods in process. Costs are assigned equally across all work in process
Sold 60% of the completed goods
There were no beginning balances in the inventory accounts. All costs incurred were debited to the appropriate account and credited to accounts payable. Provide the following:
1.Ending balance in direct materials inventory
2.The cost of goods sold
3.) The following events took place at the Rounin Company over the past year.
Incurred direct labor costs of P47, 000
Purchased manufacturing equipment for P75, 000
Purchased direct materials for P176, 000
Incurred manufacturing overhead of P81, 000
Transferred 73% of the direct materials to work in process
Completed work on 85% of the goods in work in process
Sold 90% of the completed goods
Marketing and administrative costs were P85, 000
Sales amounted to P400, 000
There were no beginning balances in any of the inventory accounts. Costs are assigned equally across all work in process
Based on the above data:
1.What is the cost of goods sold?
2.What is the company's net income or net loss?
3.How much is the value of the ending finished goods inventory?
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