A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is P3,000 and is paid at the beginning of the first year. Three-fourths of the premium applies to factory operations and one-fourth applies to selling and administrative activities. The amounts of product and period costs respectively for the first year of coverage were: a. P250; P750 b. P750; P250 c. P1,000; P0 d. P2,250;P750
A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is P3,000 and is paid at the beginning of the first year. Three-fourths of the premium applies to factory operations and one-fourth applies to selling and administrative activities. The amounts of product and period costs respectively for the first year of coverage were: a. P250; P750 b. P750; P250 c. P1,000; P0 d. P2,250;P750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is P3,000 and is paid at the beginning of the first year. Three-fourths of the premium applies to factory operations and one-fourth applies to selling and administrative activities. The amounts of product and period costs respectively for the first year of coverage were:
a. P250; P750
b. P750; P250
c. P1,000; P0
d. P2,250;P750
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