Compute for the: a. Total manufacturing cost for the period b. Cost of goods sold for the period c. Net Income or (loss) for the period
Compute for the: a. Total manufacturing cost for the period b. Cost of goods sold for the period c. Net Income or (loss) for the period
Chapter5: Process Costing
Section: Chapter Questions
Problem 14PB: Rexar had 1,000 units in beginning inventory before starting 9.500 units and completing 8,000 units....
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![Test II. Problem. Handwritten with solution.
Cloud Nine Choco Company had raw materials on hand on January 1 of the current year of P540,000 and on June 30 of P570,000. Work
in Process Inventory was P600,000 on January 1 and P440,000 on June 30. The balance of finished goods inventory was P580,000 on January 1
and P400,000 on June 30. The Company purchased materials for the period amounting to P1,640,000. Of the raw materials issued, 10% are
indirect materials. The labor charges for the period were: direct labor, P840,000; indirect labor, P180,000; office salaries, P140,000, and sales
salaries of P80,000. The total factory utilities expense incurred for the period was P360,000 while depreciation on factory equipment was
reported to be P120,000. The company has maintained a 25% gross profit rate for the entire period.
Compute for the:
a. Total manufacturing cost for the period
b. Cost of goods sold for the period
c. Net Income or (loss) for the period](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3201f440-3698-4177-be6c-3ad3075593cb%2F101837d5-4242-4d63-9c89-cbe7ec50e09c%2Fdx8jb9k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Test II. Problem. Handwritten with solution.
Cloud Nine Choco Company had raw materials on hand on January 1 of the current year of P540,000 and on June 30 of P570,000. Work
in Process Inventory was P600,000 on January 1 and P440,000 on June 30. The balance of finished goods inventory was P580,000 on January 1
and P400,000 on June 30. The Company purchased materials for the period amounting to P1,640,000. Of the raw materials issued, 10% are
indirect materials. The labor charges for the period were: direct labor, P840,000; indirect labor, P180,000; office salaries, P140,000, and sales
salaries of P80,000. The total factory utilities expense incurred for the period was P360,000 while depreciation on factory equipment was
reported to be P120,000. The company has maintained a 25% gross profit rate for the entire period.
Compute for the:
a. Total manufacturing cost for the period
b. Cost of goods sold for the period
c. Net Income or (loss) for the period
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