Camille Company has underapplied overhead of P45,000 for the year ended December 31. Before disposition of the underapplied overhead, selected December 31 balances from Camille Company's records are as follows: P 720,000 Cost of goods sold Inventories Direct materials Work in process Finished goods 36,000 54,000 90,000 Under Camille's cost accounting system, over or underapplied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances. In its income statement, Camille should report cost of goods sold of P 682,500 b.. P 684,000 а. c. P 756,000 d. P 757,500 с.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Camille Company has underapplied overhead of P45,000 for the year ended
December 31. Before disposition of the underapplied overhead, selected December
31 balances from Camille Company's records are as follows:
Cost of goods sold
Inventories
Direct materials
Work in process
Finished goods
P 720,000
36,000
54,000
90,000
Under Camille's cost accounting system, over or underapplied overhead is allocated
to appropriate inventories and cost of goods sold based on year-end balances.
In its income statement, Camille should report cost of goods sold of
P 682,500
b.. P 684,000
а.
P 756,000
d. P 757,500
с.
Transcribed Image Text:Camille Company has underapplied overhead of P45,000 for the year ended December 31. Before disposition of the underapplied overhead, selected December 31 balances from Camille Company's records are as follows: Cost of goods sold Inventories Direct materials Work in process Finished goods P 720,000 36,000 54,000 90,000 Under Camille's cost accounting system, over or underapplied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances. In its income statement, Camille should report cost of goods sold of P 682,500 b.. P 684,000 а. P 756,000 d. P 757,500 с.
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