Question: Ria Company manufactures quality wooden furniture sets. A job order from Ebie Randall Company of Ohio, USA, for 5 sets of furniture was received.
Ria Company manufactures quality wooden furniture sets. A job order from Ebie Randall Company of Ohio, USA, for 5 sets of furniture was received. The cost information related to this order as at year end 2015 follows: The WIP at the beginning of the year was 20% less than the WIP inventory at the end of the year. The total manufacturing costs added during the year was P900,000. The manufacturing overhead applied was 72% of direct labor costs, and its equal to 25% of the total manufacturing costs. The costs of goods manufactured was P850,000.
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To solve this problem we need to find the following 1 The WIP inventory at the beginning of the year ... View full answer
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