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COST ACCOUNTING  PLS SHOW SOLUTION

COST ACCOUNTING  PLS SHOW SOLUTION

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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COST ACCOUNTING 

PLS SHOW SOLUTION

7. BonGo, a general manager of a highly automated coffee production plant in Bulacan has provided the following information for transactions that occurred during October. The production plant uses a JIT costing system. a. Raw materials costing P300,000 were purchased. b. All materials costing P300,000 were requisitioned for production c. Direct labor costs of P200,000 were incurred d. Actual Factory Overhead costs amounted to P995,000 e. Conversion costs allocated totaled P1,300,000. This includes the direct labor cost f. All units are completed and immediately sold REQUIRED: What is the Over-Allocated or Under-Allocated conversion costs for the month? a. P305,000 over allocated b. P195,000 under allocated c. P105,000 over allocated d. P105,000 under-allocated 8. Same problem in no. 6, assuming no adjustment has been made for over-allocated or under-allocated conversion cost REQUIRED: What is the balance of the cost of goods sold account on October 31? a. P1,300,000 b. P1,495,000 c. P 1,600,000 d. P 1,195,000
Transcribed Image Text:7. BonGo, a general manager of a highly automated coffee production plant in Bulacan has provided the following information for transactions that occurred during October. The production plant uses a JIT costing system. a. Raw materials costing P300,000 were purchased. b. All materials costing P300,000 were requisitioned for production c. Direct labor costs of P200,000 were incurred d. Actual Factory Overhead costs amounted to P995,000 e. Conversion costs allocated totaled P1,300,000. This includes the direct labor cost f. All units are completed and immediately sold REQUIRED: What is the Over-Allocated or Under-Allocated conversion costs for the month? a. P305,000 over allocated b. P195,000 under allocated c. P105,000 over allocated d. P105,000 under-allocated 8. Same problem in no. 6, assuming no adjustment has been made for over-allocated or under-allocated conversion cost REQUIRED: What is the balance of the cost of goods sold account on October 31? a. P1,300,000 b. P1,495,000 c. P 1,600,000 d. P 1,195,000
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