How to answer problem 4-9 and 4-11

4,900,000 Problem 4-9 (AICPA Adapted) Problem 4-11 (PHILCPA Adapted) Grim Company incurred the following costs during the Mercury Company showed cost of goods sold of P4,320,000 250,000 current year: 1, 750,000 after the first year of operations. The total manufacturing 1,600,000 cost comprised the following: Property taxes 1,500,000 Materials used Freight in Doubtful accounts 850,000 Direct labor incurred 50% 2.150,000 Manufacturing overhead 30% Officers' salaries 500,000 20% Insurance Sales representative salaries 1,000,000 Interest on inventory loan Goods in process at year-end amounted to 10% of the total Research and development expense manufacturing cost. Finished goods at year-end amounted What amount of these costs should be reported a to 20% of the cost of goods manufactured. administrative expenses? What amount should be reported as direct labor cost incurred? a. 1,800,000 a. 2,600,000 b. 2,400,000 b. 3,350,000 C. 3,000,000 C. 5,200,000 d. 5,400,000 d. 4,200,000 138 139