ABC Inc. produces customized vans in a food carts order shop. On November 1, the following...

Transcribed Image Text:

ABC Inc. produces customized vans in a food carts order shop. On November 1, the following balances appear in the inventory records: Finished goods Work in process Raw Materials P179,000 278,000 83,000 The amount in Finished Goods represents P101,000 recorded for JO 175 and P78,000 for JO 177. The Work in Process account represent the three food carts in process, as follows: Factory Overhead Direct labor Direct materials JO 179 P45,000 75,000 26,000 JO 180 P30,000 50,000 7,000 JO 181 P15,000 25,000 5,000 The following transactions occurred during November: a. Purchased materials on account P80,000 b. Requisitioned P60,000 of materials from inventory: P15,000 applied to JO 180, P25,000 to JO 181, and P16,000 to JO 182, a new order; the balance for indirect materials. c. Paid the payroll and the labor costs distribution in a single entry: total payroll, P209,000. Of the payroll cost, 10% applied to JO 179, 20% to JO 180, 35% to JO 181, 30% to JO 182, and the remainder to indirect labor. d. Paid the following factory bills for the month: Utilities, P25,000; rent, P35,000. e. Recorded other factory overhead costs as follows: depreciation, P20,000, and expired prepaid insurance, P15,000. f. Applied factory overhead at the rate based on direct labor cost. g. Completed JO 179 and 180. h. Sold JO 175, 177 and 180 on account at 50% over manufacturing costs (normal). i. Paid operating expense, P95,000. j. Closed the overhead account (amount is considered insignificant). What is the balance of the Work in Process Inventory account at the end of the period? What is the balance of the Finished Goods Inventory account at the end of the period? How much is the cost of goods manufactured? [ How much is the cost of sales (normal)?[ How much is the Cost of Sales after adjustment for underapplied or overapplied overhead? How much is the net income? [ ABC Inc. produces customized vans in a food carts order shop. On November 1, the following balances appear in the inventory records: Finished goods Work in process Raw Materials P179,000 278,000 83,000 The amount in Finished Goods represents P101,000 recorded for JO 175 and P78,000 for JO 177. The Work in Process account represent the three food carts in process, as follows: Factory Overhead Direct labor Direct materials JO 179 P45,000 75,000 26,000 JO 180 P30,000 50,000 7,000 JO 181 P15,000 25,000 5,000 The following transactions occurred during November: a. Purchased materials on account P80,000 b. Requisitioned P60,000 of materials from inventory: P15,000 applied to JO 180, P25,000 to JO 181, and P16,000 to JO 182, a new order; the balance for indirect materials. c. Paid the payroll and the labor costs distribution in a single entry: total payroll, P209,000. Of the payroll cost, 10% applied to JO 179, 20% to JO 180, 35% to JO 181, 30% to JO 182, and the remainder to indirect labor. d. Paid the following factory bills for the month: Utilities, P25,000; rent, P35,000. e. Recorded other factory overhead costs as follows: depreciation, P20,000, and expired prepaid insurance, P15,000. f. Applied factory overhead at the rate based on direct labor cost. g. Completed JO 179 and 180. h. Sold JO 175, 177 and 180 on account at 50% over manufacturing costs (normal). i. Paid operating expense, P95,000. j. Closed the overhead account (amount is considered insignificant). What is the balance of the Work in Process Inventory account at the end of the period? What is the balance of the Finished Goods Inventory account at the end of the period? How much is the cost of goods manufactured? [ How much is the cost of sales (normal)?[ How much is the Cost of Sales after adjustment for underapplied or overapplied overhead? How much is the net income? [

Answer rating: 100% (QA)

i Balance of Work in Process Inventory at the end of the period JO 179 Direct Materials P26000 Direc... View the full answer