PSMO Company currently uses normal costing method in accumulating the cost of production. The following data...

 

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PSMO Company currently uses normal costing method in accumulating the cost of production. The following data were provided for the current year Raw Materials: Inventory, Jan. 1 Issuance to production Purchases on account Factory Labor: Total Factory payroll Factory overhead: Plant depreciation Utilities Repair and Maintenance Indirect Materials Indirect Labor Other overhead costs Work in process: Jan. 1 Dec. 31 P 6,940,000 P 3,370,000 P 7,010,000 P600,000 3,600,000 4,350,000 P 186,000 2,700,000 200,000 145,000 How much is the total manufacturing costs assuming factory overhead is applied at 70% of direct labor costs 145,000 230,000 600,000 105,000 720,000 650,000 PSMO Company currently uses normal costing method in accumulating the cost of production. The following data were provided for the current year Raw Materials: Inventory, Jan. 1 Issuance to production Purchases on account Factory Labor: Total Factory payroll Factory overhead: Plant depreciation Utilities Repair and Maintenance Indirect Materials Indirect Labor Other overhead costs Work in process: Jan. 1 Dec. 31 P 6,940,000 P 3,370,000 P 7,010,000 P600,000 3,600,000 4,350,000 P 186,000 2,700,000 200,000 145,000 How much is the total manufacturing costs assuming factory overhead is applied at 70% of direct labor costs 145,000 230,000 600,000 105,000 720,000 650,000

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Working Note 1 Direct material used Material Issuance to production P3600000 Direct Labo... View the full answer