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Curry Corporation began operations in the current year. During the Cur it incurred the following expenditures in purchasing materials for producing its product: Purchase price of raw materials = P3,000,000 * Import duty and other non-refundable purchase taxes = Refundable purchase taxes = P100,000 Freight costs for bringing the goods from the supplier to the factory raw material storeroom = P300,000 Costs of unloading the materials into the raw material storeroom = %3D P800,000 %3D %3D P2,000 • Packaging = P200,000 %3D The entity received P53,000 volume rebate from a supplier for purchasing more than P1,500,000 from the supplier during the year. The entity incurred the following additional costs in the production run: Salary of the machine workers in the factory = P500,000 • Salary of factory supervisor = P300,000 Depreciation of the factory building and equipment used for production process = P60,000 Consumables used' in the production process • Depreciation of vehicle used to transport the goods from the raw materials storeroom to the machine floor %3D P20,000 %3D P40,000 %3D • Factory electricity usage charges Factory rental Depreciation and maintenance of the entity's vehicle used by the factory supervisor (50 per cent for official use and 50 per cent for personal use) = P20,000. Private use of the vehicle is an employee benefit. P30,000 %3D P100,000 %3D %3D

Curry Corporation began operations in the current year. During the Cur it incurred the following expenditures in purchasing materials for producing its product: Purchase price of raw materials = P3,000,000 * Import duty and other non-refundable purchase taxes = Refundable purchase taxes = P100,000 Freight costs for bringing the goods from the supplier to the factory raw material storeroom = P300,000 Costs of unloading the materials into the raw material storeroom = %3D P800,000 %3D %3D P2,000 • Packaging = P200,000 %3D The entity received P53,000 volume rebate from a supplier for purchasing more than P1,500,000 from the supplier during the year. The entity incurred the following additional costs in the production run: Salary of the machine workers in the factory = P500,000 • Salary of factory supervisor = P300,000 Depreciation of the factory building and equipment used for production process = P60,000 Consumables used' in the production process • Depreciation of vehicle used to transport the goods from the raw materials storeroom to the machine floor %3D P20,000 %3D P40,000 %3D • Factory electricity usage charges Factory rental Depreciation and maintenance of the entity's vehicle used by the factory supervisor (50 per cent for official use and 50 per cent for personal use) = P20,000. Private use of the vehicle is an employee benefit. P30,000 %3D P100,000 %3D %3D

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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E 2-5 - Items included in cost Curry Corporation began operations in the current year. During the Cear it incurred the following expenditures in purchasing materials for producing its product: Purchase price of raw materials = P3,000,000 Import duty and other non-refundable purchase taxes Refundable purchase taxes Freight costs for bringing the goods from the supplier to the factory raw material storeroom = P300,000 Costs of unloading the materials into the raw material storeroom = P2,000 • Packaging = P200,000 %3D P800,000 || P100,000 %3D %3D The entity received P53,000 volume rebate from a supplier for purchasing more than P1,500,000 from the supplier during the year. The entity incurred the following additional costs in the production run: Salary of the machine workers in the factory • Salary of factory supervisor = P300,000 Depreciation of the factory building and equipment used for production process = P60,000 Consumables used' in the production process Depreciation of vehicle used to transport the goods from the raw materials storeroom to the machine floor P500,000 %3D P20,000 %3D P40,000 %3D Factory electricity usage charges = P30,000 • Factory rental Depreciation and maintenance of the entity's vehicle used by the factory supervisor (50 per cent for official use and 50 per cent for personal use) = P20,000. Private use of the vehicle is an employee benefit. %3D P100,000 %3D %3D
Transcribed Image Text:E 2-5 - Items included in cost Curry Corporation began operations in the current year. During the Cear it incurred the following expenditures in purchasing materials for producing its product: Purchase price of raw materials = P3,000,000 Import duty and other non-refundable purchase taxes Refundable purchase taxes Freight costs for bringing the goods from the supplier to the factory raw material storeroom = P300,000 Costs of unloading the materials into the raw material storeroom = P2,000 • Packaging = P200,000 %3D P800,000 || P100,000 %3D %3D The entity received P53,000 volume rebate from a supplier for purchasing more than P1,500,000 from the supplier during the year. The entity incurred the following additional costs in the production run: Salary of the machine workers in the factory • Salary of factory supervisor = P300,000 Depreciation of the factory building and equipment used for production process = P60,000 Consumables used' in the production process Depreciation of vehicle used to transport the goods from the raw materials storeroom to the machine floor P500,000 %3D P20,000 %3D P40,000 %3D Factory electricity usage charges = P30,000 • Factory rental Depreciation and maintenance of the entity's vehicle used by the factory supervisor (50 per cent for official use and 50 per cent for personal use) = P20,000. Private use of the vehicle is an employee benefit. %3D P100,000 %3D %3D
Depreciation and maintenance of vehicles used by the sales staff = Depreciation of the administration building = P50,000 operations (e.g. financing, tax and corporate secretarial functions), Salaries of the administration personnel = P305,000 The entity incurred the following selling expenses: attributable, in equal proportion, to the sales and other non-production The entity incurred the following administration expenses: Of the administration expenses 20 per cent are attributable to administering the factory. The rest of the administration expenses are Salary of the administration personnel = P600,000 used by the Depreciation and administrative staff maintenance of vehicles P15,000 |3D %3D Advertising costs P30,000 %3D P10,000 %3D Required: Compute or the following: 1. Costs of purchase 2. Costs of conversion
Transcribed Image Text:Depreciation and maintenance of vehicles used by the sales staff = Depreciation of the administration building = P50,000 operations (e.g. financing, tax and corporate secretarial functions), Salaries of the administration personnel = P305,000 The entity incurred the following selling expenses: attributable, in equal proportion, to the sales and other non-production The entity incurred the following administration expenses: Of the administration expenses 20 per cent are attributable to administering the factory. The rest of the administration expenses are Salary of the administration personnel = P600,000 used by the Depreciation and administrative staff maintenance of vehicles P15,000 |3D %3D Advertising costs P30,000 %3D P10,000 %3D Required: Compute or the following: 1. Costs of purchase 2. Costs of conversion
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