ABC Manufacturing has the following account balances at the beginning of the current year: Raw Materials Inventory P57,500; WIP Inventory P172,500; and Finished Goods Inventory P138,000. Additional information during January: - Purchased of Raw Materials: On account P230,000.00; Cash P92,000.00; and - Issuance of Raw Materials to the production department, 10% are indirect materials P207,000.00. Which of the following is the amount of the direct materials used? Select the correct response: P174,800.00 P184,000.00 P186,300.00 P201,250.00

ABC Manufacturing has the following account balances at the beginning of the current year: Raw Materials Inventory P57,500; WIP Inventory P172,500; and Finished Goods Inventory P138,000. Additional information during January: - Purchased of Raw Materials: On account P230,000.00; Cash P92,000.00; and - Issuance of Raw Materials to the production department, 10% are indirect materials P207,000.00. Which of the following is the amount of the direct materials used? Select the correct response: P174,800.00 P184,000.00 P186,300.00 P201,250.00

Name: ABC Manufacturing has the following account balances at the beginning
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Description: ABC Manufacturing has the following account balances at the beginning of the currentyear:Raw Materials Inventory P57,500;WIP Inventory P172,500; andFinished Goods Inventory P138,000.Additional information during January:- Purchased of Raw Materials:

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Question

ABC Manufacturing has the following account balances at the beginning of the current
year:
Raw Materials Inventory P57,500;
WIP Inventory P172,500; and
Finished Goods Inventory P138,000.
Additional information during January:
- Purchased of Raw Materials: On account P230,000.00; Cash P92,000.00; and
- Issuance of Raw Materials to the production department, 10% are indirect materials
P207,000.00.
Which of the following is the amount of the direct materials used?
Select the correct response:
P174,800.00
P184,000.00
P186,300.00
P201,250.00

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