18. On December 1, the Amor Company had the following inventories; materi- ais, P24,000; work in process, P12,000; and finished goods, P36,000. Dur- ing the month, materials purchases totaled P56,000. Direct labor for De- cember was P40,000, at a uniform wage of P6.40 per hour. Marketing and administrative expenses for the month amounted to 10% of net sales. In- ventories on December 31, were as follows: materials, P20,000; work in process, P8,000; and finished goods, P40,000. Net sales for December to- taled P200,000. Factory overhead is applied on the basis of P8 per labor hour. direct
18. On December 1, the Amor Company had the following inventories; materi- ais, P24,000; work in process, P12,000; and finished goods, P36,000. Dur- ing the month, materials purchases totaled P56,000. Direct labor for De- cember was P40,000, at a uniform wage of P6.40 per hour. Marketing and administrative expenses for the month amounted to 10% of net sales. In- ventories on December 31, were as follows: materials, P20,000; work in process, P8,000; and finished goods, P40,000. Net sales for December to- taled P200,000. Factory overhead is applied on the basis of P8 per labor hour. direct
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:13 On December 1, the Amor Company had the following inventories; materi-
ais, P24,000; work in process, P12,000; amd finished goods, P36,000. Dur-
ing the month, materials purchases totaled P56,000. Direct labor for De-
cember was P40,000, at a uniform wage of P6.40 per hour. Marketing and
administrative expenses for the month amounted to 10% of net sales. In-
ventories on December 31, were as follows: materials, P20,000; work in
process, P8,000; and finished goods, P40,000. Net sales for December to-
taled P200,000. Factory overhead is applied on the basis of P8 per direct
labor hour.
Compute for: (1) Prime costs, and (2) Conversion costs:
a. (1) Pl10,000 ; (2)
b. (1)
c. (1)
d. (1)
100,000 ; (2)
100,000 ; (2)
90,000 ; (2)
P 90,000
90,000
100,000
100,000
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