42 ABC Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of 2022, ABC estimated that manufacturing overhead for the year would be P4,800,000 and machine hours would be 80,000.   The following information pertains to April 2022:   Job #1 Job #2 Job #3 Work in process, April 1 P320,000 P520,000 P760,000         April production:          Direct materials requisitioned 80,000 96,000 144,000    Direct labor costs 48,000 72,000 90,000    Machine hours 400 700 900   Actual overhead costs incurred during April amounted to P125,000. During April, jobs 1 and 3 were completed. Job 1 was delivered to a customer and an invoice for P800,000 was billed. Any over- or under-applied overhead is considered to be insignificant.   How much is the cost of goods manufactured in April?  How much is the adjusted gross profit in April?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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42

ABC Company uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of 2022, ABC estimated that manufacturing overhead for the year would be P4,800,000 and machine hours would be 80,000.

 

The following information pertains to April 2022:

 

Job #1

Job #2

Job #3

Work in process, April 1

P320,000

P520,000

P760,000

 

 

 

 

April production:

 

 

 

   Direct materials requisitioned

80,000

96,000

144,000

   Direct labor costs

48,000

72,000

90,000

   Machine hours

400

700

900

 

Actual overhead costs incurred during April amounted to P125,000. During April, jobs 1 and 3 were completed. Job 1 was delivered to a customer and an invoice for P800,000 was billed. Any over- or under-applied overhead is considered to be insignificant.

 

  1. How much is the cost of goods manufactured in April? 
  2. How much is the adjusted gross profit in April? 
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