ABC Company has only one job in process on January 1, 2022, Job No. 97 for 75 units, carried at a cost of P78,400. During the 6 months period January to June 2022 JC accepted two more jobs, Job No. 98 for 200 units and Job No. 99 for 100 units. Actual data for the period is as follows:
ABC Company has only one job in process on January 1, 2022, Job No. 97 for 75 units, carried at a cost of P78,400. During the 6 months period January to June 2022 JC accepted two more jobs, Job No. 98 for 200 units and Job No. 99 for 100 units. Actual data for the period is as follows:
Direct Materials used, P2,800,000 distributed as: Job No. 97, 20%; Job No. 98, 45%; Job No. 99, 35%.
Direct Labor cost, P2,175,000 distributed as: Job No. 97, 25%; Job No. 98, 50%; Job No. 99, 25%.
Various overhead incurred, P2,878,000
Purchases of Raw Materials, P3,200,000
The company’s annual budgeted overhead is P5,460,000 while the annual budgeted direct labor costs is P4,200,000. Overhead is applied to production on the bases of direct labor costs. Jobs 97 and 98 were completed and sold while Job 99 is still in process at the end of June. Any variance is considered immaterial.
The adjusted cost of goods sold for the period ended is:
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