1.Based on the data above. What is the ending balance of Finished Goods? '. At the beginning of the year,Primer ManufacturingCompany had the followingbalances in its inventoryaccounts: Raw Materials Php100,000.00 Work in Process232,000.00 Finished Goods720,000.00 The work inprocess subsidiary ledgershows the following balances:Job 500 consists of Materials,Php 22,000.0O, direct laborPhp 48,000.00, and factoryoverhead of Php 72,000.00.Job 600 consist of Php15,000.00 Materials,30,000.00 of direct labor, and45,000.00 factory overhead. *The finished goods inventory contains Job 400 with a total cost ofP320,000 and Job 300 with a total cost of P400,000.Summary of transactions for the 3-months ended Sept. 20, of the currentyear are given below:a. Raw materials purchased on cash, P450,000.b. Materials issued to production, P400,000, distributed as follows:Job. 500 (20%), Job 600 (25%), Job 700 (30%), Job 800(15%) and thebalance represent factory supplies consumed.c. Labor costs for the period:Direct labor - P200,000 distributed as follows: Job 500 (25%); Job600 (30%); Job 700(20%) and the balance to Job 800Indirect labor - P75,000Selling and administrative expenses - P125,000.d. Administrative expenses and Manufacturing overhead incurred otherthan indirect materials and indirect labor follows:P30,00060,00012,0005,000Factory insurance expiredFactory rentFactory maintenanceOffice equipment maintenanceElectricity costs, 60% to factory, 40% toselling and administrationTaxes & Licenses, 60% to factory, 40%to selling & administrationMiscellaneous factory costs60,00020,00020,000Additional information:a. Normal Costing: Overhead is applied to thejob at the same rate used in the prior periodand the overhead variance is closed to cost ofsales.b. Only Job no. 700 is unfinished at the end ofthe period. Job 600 is in the warehouse and allother were sold at production cost plus% mark-up on a 30- day term.

Job Order Costing: It is a costing method used to calculate the cost of manufacturing each…

At the beginning of the year, Primer Manufacturing Company had the following balances in its inventory accounts: Raw Materials Php 100,000.00 Work in Process 232,000.00 Finished Goods 720,000.00 The work in process subsidiary ledger shows the following balances: Job 500 consists of Materials, Php 22,000.00, direct labor Php 48,000.00, and factory overhead of Php 72,000.00. Job 600 consist of Php 15,000.00 Materials, 30,000.00 of direct labor, and 45,000.00 factory overhead. * The finished goods inventory contains Job 400 with a total cost of P320,000 and Job 300 with a total cost of P400,000. Summary of transactions for the 3-months ended Sept. 20, of the current year are given below: 4 Raw materials purchased on cash, P450,000. b. Materials issued to production, P400,000, distributed as follows: Job. 500 (20%), Job 600 (25%), Job 700 (30%), Job 800(15%) and the balance represent factory supplies consumed. S. Labor costs for the period: Direct labor - P200,000 distributed as follows: Job 500 (25%); Job 600 (30%); Job 700(20%) and the balance to Job 800 Indirect labor - P75,000 Selling and administrative expenses - P125,000. d. Administrative expenses and Manufacturing overhead incurred other than indirect materials and indirect labor follows: P30,000 60,000 12,000 5,000 Factory insurance expired Factory rent Factory maintenance Office equipment maintenance Electricity costs, 60% to factory, 40% to selling and administration Taxes & Licenses, 60% to factory, 40% to selling & administration Miscellaneous factory costs 60,000 20,000 20,000 Additional information: a. Normal Costing: Overhead is applied to the job at the same rate used in the prior period and the overhead variance is closed to cost of sales. b. Only Job no. 700 is unfinished at the end of the period. Job 600 is in the warehouse and all other were sold at production cost plus% mark- up on a 30- day term.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q