4. The direct labor rate in Brent Company is P9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of P6.00 per direct labor hour. During May, the company purchased P60,000 in raw materials (all direct materials) and worked 3,200 direct labor hours. The Raw Materials inventory (all direct materials) decreased by P3,000 between the beginning and end of May. The Work in Process inventory on May 1 consisted of one job which had been charged with P4,000 in direct materials and on which 300 hours of direct labor time had been worked. There was no Work in Process inventory on May 31. Compute for the ending balance of Factory overhead control assuming that scrap materials for the month were sold for P750 and overhead was overapplied by P3,250 before considering the sale from scrap.

4. The direct labor rate in Brent Company is P9.00 per hour, and manufacturing overhead is applied to products using a predetermined overhead rate of P6.00 per direct labor hour. During May, the company purchased P60,000 in raw materials (all direct materials) and worked 3,200 direct labor hours. The Raw Materials inventory (all direct materials) decreased by P3,000 between the beginning and end of May. The Work in Process inventory on May 1 consisted of one job which had been charged with P4,000 in direct materials and on which 300 hours of direct labor time had been worked. There was no Work in Process inventory on May 31. Compute for the ending balance of Factory overhead control assuming that scrap materials for the month were sold for P750 and overhead was overapplied by P3,250 before considering the sale from scrap.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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