PBB Manufacturing Company uses backflush costing to account for its manufacturing costs. The following activities for...

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PBB Manufacturing Company uses backflush costing to account for its manufacturing costs. The following activities for the 1st quarter of the current year follow: a) Purchase direct materials, on account P800,000 b) Direct labor costs incurred, P500,000. c) Factory overhead costs incurred, P400,000 d) Sold the completed production at 30% mark-up on cost. Conversion cost is charged to cost of sales when incurred. At the beginning of the quarter, RIP account has a balance of P85,000 of which P35,000 is direct materials while the Finished goods account has a balance of P100,000 of which P40,000 is direct materials. There is no change in RIP and FG inventory accounts. 10. The cost of sales for the period amounted to: 11. The gross profit for the period amounted to: PBB Manufacturing Company uses backflush costing to account for its manufacturing costs. The following activities for the 1st quarter of the current year follow: a) Purchase direct materials, on account P800,000 b) Direct labor costs incurred, P500,000. c) Factory overhead costs incurred, P400,000 d) Sold the completed production at 30% mark-up on cost. Conversion cost is charged to cost of sales when incurred. At the beginning of the quarter, RIP account has a balance of P85,000 of which P35,000 is direct materials while the Finished goods account has a balance of P100,000 of which P40,000 is direct materials. There is no change in RIP and FG inventory accounts. 10. The cost of sales for the period amounted to: 11. The gross profit for the period amounted to:

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Backflush Costing Calculation 10 Cost of Sales Direct materials used Beginning direct materials in R... View the full answer