ABS Co. has these data related to production of 30,000 units during March 2021: 3/1/21 3/1/21 Direct materials (DM) P36,000 30,000 Work in process 18,000 12,000 Finished goods 54,000 72,000 Additional information for the March 2021 are as follows: DM purchased P84,000 Factory overhead per DLhour P10.00 Freight-out 2,000 Selling expenses 15,000 Direct Labor (DL) payroll 60,000 Administrative expenses 17,000 DL rate per hour 7.50 For the month of March 2021, PRIME cost was: A. P90,000 B. P120,000 C. P144,000 D. P150,000
ABS Co. has these data related to production of 30,000 units during March 2021: 3/1/21 3/1/21 Direct materials (DM) P36,000 30,000 Work in process 18,000 12,000 Finished goods 54,000 72,000 Additional information for the March 2021 are as follows: DM purchased P84,000 Factory overhead per DLhour P10.00 Freight-out 2,000 Selling expenses 15,000 Direct Labor (DL) payroll 60,000 Administrative expenses 17,000 DL rate per hour 7.50 For the month of March 2021, PRIME cost was: A. P90,000 B. P120,000 C. P144,000 D. P150,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
ABS Co. has these data related to production of 30,000 units during March 2021:
| 3/1/21 | 3/1/21 | |
| Direct materials (DM) | P36,000 | 30,000 |
| Work in process | 18,000 | 12,000 |
| Finished goods | 54,000 | 72,000 |
Additional information for the March 2021 are as follows:
DM purchased P84,000
Factory
Freight-out 2,000
Selling expenses 15,000
Direct Labor (DL) payroll 60,000
Administrative expenses 17,000
DL rate per hour 7.50
For the month of March 2021, PRIME cost was:
A. P90,000
B. P120,000
C. P144,000
D. P150,000
A. P90,000
B. P120,000
C. P144,000
D. P150,000
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