ABC Company pays P4 per unit for a minimum 2,000 units completed and P5 per unit in excess of 2,000 units. The guaranteed daily wages for 20 employees is P8,000. Daily production in units for the 1st week is as follows: Monday 2,300; Tuesday 2,450; Wednesday 1,900; Thursday 2,700; Friday 1,600; and Saturday 2,600. If Tolentino uses perpetual inventory system, what is the amount of direct labor cost charged to work in process account? a.P46,000 b.P48,000 c.P54,200 d.P58,250
ABC Company pays P4 per unit for a minimum 2,000 units completed and P5 per unit in excess of 2,000 units. The guaranteed daily wages for 20 employees is P8,000. Daily production in units for the 1st week is as follows: Monday 2,300; Tuesday 2,450; Wednesday 1,900; Thursday 2,700; Friday 1,600; and Saturday 2,600. If Tolentino uses perpetual inventory system, what is the amount of direct labor cost charged to work in process account? a.P46,000 b.P48,000 c.P54,200 d.P58,250
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Company pays P4 per unit for a minimum 2,000 units completed and P5 per unit in excess of 2,000 units. The guaranteed daily wages for 20 employees is P8,000. Daily production in units for the 1st week is as follows: Monday 2,300; Tuesday 2,450; Wednesday 1,900; Thursday 2,700; Friday 1,600; and Saturday 2,600. If Tolentino uses perpetual inventory system, what is the amount of direct labor cost charged to work in process account?
a.P46,000
b.P48,000
c.P54,200
d.P58,250
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