Data about Genesis Company production and inventories for the month of October are as follows: Purchases (direct Materials P143,440 Freight in 5,000 Purchase Return and Allowances 2,440 Actual Factory Overhead 120,000 Direct Labor 175,000 Inventories: October 1 October 31 Finished Goods P68,000 P56,000 Work in Process 110,000 135,000 Direct matenial 52,000 44,000 Genesis Company applies Factory overhead to production at 80% of Direct Labor cost. Over or underapplied overhead is close to cost of good sold at the year end. The company accounting period is on the calendar year end basis. Required: compute the following 1. The Prime Cost 2. The Conversion cost 3, the Total manufacturing cost 4. The Cost of Goods Sold transferred to the Finished Goods inventory account 5. The Cost of Good Sold for the month of October 6. the amount of Over or Under applied for the month of October

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question
ACCOUNTING
Interworld Colleges Foundation Inc.
SON
Burgos St, Paniqui,Tarlac
COLLEGE OF BUSINESS AND ACCOUNTANCY
Data about Genesis Company production and inventories for the month of October are as follows:
Purchases (direct Materials
P143,440
Freight in
5,000
Purchase Return and Allowances
2,440
Actual Factory Overhead
120,000
Direct Labor
175,000
Inventories:
October 1
October 31
Finished Goods
P68,000
P56,000
Work in Process
110,000
135,000
Direct material
52,000
44,000
Genesis Company applies Factory overhead to production at 80% of Direct Labor cost. Over or
underapplied overhead is close to cost of good sold at the year end. The company accounting period is
on the calendar year end basis.
Required: compute the following
1. The Prime Cost
2. The Conversion cost
3. the Total manufacturing cost
4. The Cost of Goods Sold transferred tɔ the Finished Goods inventory account
5. The Cost of Good Sold for the month of October
6. the amount of Over or Under applied for the month of October
ATION
Transcribed Image Text:Interworld Colleges Foundation Inc. SON Burgos St, Paniqui,Tarlac COLLEGE OF BUSINESS AND ACCOUNTANCY Data about Genesis Company production and inventories for the month of October are as follows: Purchases (direct Materials P143,440 Freight in 5,000 Purchase Return and Allowances 2,440 Actual Factory Overhead 120,000 Direct Labor 175,000 Inventories: October 1 October 31 Finished Goods P68,000 P56,000 Work in Process 110,000 135,000 Direct material 52,000 44,000 Genesis Company applies Factory overhead to production at 80% of Direct Labor cost. Over or underapplied overhead is close to cost of good sold at the year end. The company accounting period is on the calendar year end basis. Required: compute the following 1. The Prime Cost 2. The Conversion cost 3. the Total manufacturing cost 4. The Cost of Goods Sold transferred tɔ the Finished Goods inventory account 5. The Cost of Good Sold for the month of October 6. the amount of Over or Under applied for the month of October ATION
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