PROBLEM 1 Red Company uses normal costing. During the year ended December 31, 2019, the following information were made available: Total manufacturing costs incurred during the year, P2,200,000; Cost of goods manufactured amounted to P1,940,000; Factory Overhead is applied to production at 80% of direct labor cost; Applied Factory Overhead during the year amounted to 30% of total manufacturing cost; Beginning work-in-process inventory was 75% of the work-in-process at the end. Compute for the cost of direct materials used for the year ended December 31, 2019. Your answer PROBLEM 2 The following costs were incurred during the year by Hopefully Company: + Depreciation of factory machines P24,000 Oil used to lubricate factory machines. 12,000 Promotional expenses 28,000 Raw materials used 350,000 Repair of factory machines 49,000 Salary of factory superintendent 60,000 Wages of factory workers 120,000 Salary of factory clerk 40,000 Transportation cost of salesmen 38,000 Packaging materials in the store. 26,000 Gas/oil expenses of the general manager 80,000 Product warranty expense 33,000 Compute for the total product cost. PROBLEM 3 For producing 200 units of product, a company uses P60,000 of direct materials, pays P70,000 of direct labor and incurs P20,000 and P60,000 variable overhead and fixed overhead, respectively. Compute the product unit cost assuming that 450 units are produced. Your answer