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Data are as follows: Beginning inventory balances for Work in Process and Finished Goods inventory are P 67,000 and P 54,000, respectively. Ending balances of raw materials, Work in Process and Finished goods inventory are as follows: P 39,000, P 59,000 and P 48,000, respectively. Raw materials purchases is P 45,000. Factory overhead totaled P 7,500 (this is 75% of total Direct labor cost). Total expenses of the company totaled P 11,500 which is 11.5% of total sales. Net income is 31,000 Provide the solution on how to compute the prime cost. P36,000 must be the final answer.

Data are as follows: Beginning inventory balances for Work in Process and Finished Goods inventory are P 67,000 and P 54,000, respectively. Ending balances of raw materials, Work in Process and Finished goods inventory are as follows: P 39,000, P 59,000 and P 48,000, respectively. Raw materials purchases is P 45,000. Factory overhead totaled P 7,500 (this is 75% of total Direct labor cost). Total expenses of the company totaled P 11,500 which is 11.5% of total sales. Net income is 31,000 Provide the solution on how to compute the prime cost. P36,000 must be the final answer.

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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Data are as follows: Beginning inventory balances for Work in Process and Finished Goods inventory are P 67,000 and P 54,000, respectively. Ending balances of raw materials, Work in Process and Finished goods inventory are as follows: P 39,000, P 59,000 and P 48,000, respectively. Raw materials purchases is P 45,000. Factory overhead totaled P 7,500 (this is 75% of total Direct labor cost). Total expenses of the company totaled P 11,500 which is 11.5% of total sales. Net income is 31,000

Provide the solution on how to compute the prime cost. P36,000 must be the final answer.

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