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Curry Corporation began operations in the current year. During year it incurred the following expenditures in purchasing materials for producing its product: Purchase price of raw materials = 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 = P2,000 • Packaging = P200,000 P3,000,000 P800,000 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 = P20,000 Depreciation of vehicle used to transport the goods from the raw materials storeroom to the machine floor = P500,000 P40,000 Factory electricity usage charges = P30,000 Factory rental = P100,000 • 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

Curry Corporation began operations in the current year. During year it incurred the following expenditures in purchasing materials for producing its product: Purchase price of raw materials = 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 = P2,000 • Packaging = P200,000 P3,000,000 P800,000 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 = P20,000 Depreciation of vehicle used to transport the goods from the raw materials storeroom to the machine floor = P500,000 P40,000 Factory electricity usage charges = P30,000 Factory rental = P100,000 • 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

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 year 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 P800,000 P100,000 P200,000 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 Factory electricity usage charges = P30,000 Factory rental = P100,000 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) benefit. P500,000 %3D P20,000 P40,000 %3D %3D P20,000. Private use of the vehícle is an employee %3D
Transcribed Image Text:E 2-5 - Items included in cost Curry Corporation began operations in the current year. During the year 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 P800,000 P100,000 P200,000 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 Factory electricity usage charges = P30,000 Factory rental = P100,000 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) benefit. P500,000 %3D P20,000 P40,000 %3D %3D P20,000. Private use of the vehícle is an employee %3D
The entity incurred the following administration expenses: Depreciation of the administration building Depreciation and maintenance administrative staff = P15,000 Salaries of the administration personnel = P305,060 P50,000 of vehicles used by the Of the administration expenses 20 per cent are attributable to administering the factory. The rest of the administration expenses are attributable, in equal proportion, to the sales and other non-production operations (e.g. financing, tax and corporate secretarial functions). The entity incurred the following selling expenses: Advertising costs = P30,000 Depreciation and maintenance of vehicles used by the sales staff P10,000 Salary of the administration personnel = P600,000 %3D Required: Compute or the following: 1. Costs of purchase 2. Costs of conversion
Transcribed Image Text:The entity incurred the following administration expenses: Depreciation of the administration building Depreciation and maintenance administrative staff = P15,000 Salaries of the administration personnel = P305,060 P50,000 of vehicles used by the Of the administration expenses 20 per cent are attributable to administering the factory. The rest of the administration expenses are attributable, in equal proportion, to the sales and other non-production operations (e.g. financing, tax and corporate secretarial functions). The entity incurred the following selling expenses: Advertising costs = P30,000 Depreciation and maintenance of vehicles used by the sales staff P10,000 Salary of the administration personnel = P600,000 %3D Required: Compute or the following: 1. Costs of purchase 2. Costs of conversion
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