Compute the Cost of Goods Sold for 2020 of Pillows Company considering the following information: Raw materials purchased was P2,500,000 with freight-in of P120,000 Purchase returns was P50,000 and purchase discount is 60% of purchase returns Raw materials beginning was P460,000 Raw materials end was P40,000 more than the beginning inventory Direct labor is P1,000,000 Factory overhead is 50% of direct labor Total goods placed in process is 150% of manufacturing cost WIP, end is 75% of WIP, beg Finished goods beginning balance is lesser by P100,000 than the ending balance which was P600,000
Compute the Cost of Goods Sold for 2020 of Pillows Company considering the following information: Raw materials purchased was P2,500,000 with freight-in of P120,000 Purchase returns was P50,000 and purchase discount is 60% of purchase returns Raw materials beginning was P460,000 Raw materials end was P40,000 more than the beginning inventory Direct labor is P1,000,000 Factory overhead is 50% of direct labor Total goods placed in process is 150% of manufacturing cost WIP, end is 75% of WIP, beg Finished goods beginning balance is lesser by P100,000 than the ending balance which was P600,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 12
Compute the Cost of Goods Sold for 2020 of Pillows Company considering the following
information:
Raw materials purchased was P2,500,000 with freight-in of P120,000
Purchase returns was P50,000 and purchase discount is 60% of purchase returns
Raw materials beginning was P460,000
Raw materials end was P40,000 more than the beginning inventory
Direct labor is P1,000,000
Factory
Total goods placed in process is 150% of
WIP, end is 75% of WIP, beg
Finished goods beginning balance is lesser by P100,000 than the ending balance which
was P600,000
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