I.traight Problems:

Instruction:Solve what is being asked on each number. NOTE: SOLUTION IS REQUIRED!.

1.For August, ABC Company had cost of goods manufactured equal to P240,000, materials purchases of P66,000; depreciation of factory assets, P34,000; cost of goods sold, P280,000; expired insurance on factory assets, P4,000; costs of goods available for sale, P380,000; and total factory labor, P98,000. Inventories were as follows;

August 1

Materials

P30,000

P38,000

Work in process

P80,000

P60,000

Finished goods

P?

P?

General factory overhead of P26,000 was incurred, this figure includes all factory overhead except indirect materials, depreciation and insurance. Direct labor cost for the month was six times larger than indirect labor cost. The cost of indirect materials used was P3,000. The company uses a single materials account for direct and indirect materials.

Required:

A.Direct materials

B.Manufacturing costs

C.Finished goods, June 30

D.Prime costs

E.Conversion costs