1.Based on the data above. What is the ending balance of Work in Process? '. At the beginning of the year,Primer ManufacturingCompany had the followingbalances in its inventoryaccounts: Raw Materials Php100,000.00 Work in Process232,000.00 Finished Goods720,000.00 The work inprocess subsidiary ledgershows the following balances:Job 500 consists of Materials,Php 22,000.0O, direct laborPhp 48,000.00, and factoryoverhead of Php 72,000.00.Job 600 consist of Php15,000.00 Materials,30,000.00 of direct labor, and45,000.00 factory overhead. *The finished goods inventory contains Job 400 with a total cost ofP320,000 and Job 300 with a total cost of P400,000.Summary of transactions for the 3-months ended Sept. 20, of the currentyear are given below:a. Raw materials purchased on cash, P450,000.b. Materials issued to production, P400,000, distributed as follows:Job. 500 (20%), Job 600 (25%), Job 700 (30%), Job 800(15%) and thebalance represent factory supplies consumed.c. Labor costs for the period:Direct labor - P200,000 distributed as follows: Job 500 (25%); Job600 (30%); Job 700(20%) and the balance to Job 800Indirect labor - P75,000Selling and administrative expenses - P125,000.d. Administrative expenses and Manufacturing overhead incurred otherthan indirect materials and indirect labor follows:P30,00060,00012,0005,000Factory insurance expiredFactory rentFactory maintenanceOffice equipment maintenanceElectricity costs, 60% to factory, 40% toselling and administrationTaxes & Licenses, 60% to factory, 40%to selling & administrationMiscellaneous factory costs60,00020,00020,000Additional information:a. Normal Costing: Overhead is applied to thejob at the same rate used in the prior periodand the overhead variance is closed to cost ofsales.b. Only Job no. 700 is unfinished at the end ofthe period. Job 600 is in the warehouse and allother were sold at production cost plus% mark-up on a 30- day term.

Ending work in process inventory consists of those costs which are incurred in the particular period…

Answered: 1.Based on the data above. What is the…

1.Based on the data above. What is the ending balance of Work in Process?

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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