Chris Corporation manufactures metal chips. The following data was available for the year: • Raw materials purchase: P 90,000 • Direct labor: 50,000 • Total manufacturing costs: 219,000 • Decrease in raw materials inventory: 4,000 • Decrease in work in process inventory: 21,000 • Increase in finished good inventory: 45,000 • Gross margin ratio: 40% How much is the conversion cost for the period? a. P 125,000 b. P 129,000 c. P 133,000 d. P 144,000
Chris Corporation manufactures metal chips. The following data was available for the year: • Raw materials purchase: P 90,000 • Direct labor: 50,000 • Total manufacturing costs: 219,000 • Decrease in raw materials inventory: 4,000 • Decrease in work in process inventory: 21,000 • Increase in finished good inventory: 45,000 • Gross margin ratio: 40% How much is the conversion cost for the period? a. P 125,000 b. P 129,000 c. P 133,000 d. P 144,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Chris Corporation manufactures metal chips. The following data was available for the year:
• Raw materials purchase: P 90,000
• Direct labor: 50,000
• Total manufacturing costs: 219,000
• Decrease in raw materials inventory: 4,000
• Decrease in work in process inventory: 21,000
• Increase in finished good inventory: 45,000
• Gross margin ratio: 40%
How much is the conversion cost for the period?
a. P 125,000
b. P 129,000
c. P 133,000
d. P 144,000
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