Gavin Corporation is a manufacturing Company engaged in the production of a single special product. The company is using job order costing system and the accumulated production costs are as follows: The following information is available as of June 1, 2021 P 10,710 Work in Process Direct Materials Inventory 48,600 In analyzing the job order cost sheets, the records disclosed that the composition of the work in process inventory on June 1, 2021 were as follows: Р 3,960 4,500 Direct materials used Direct labor (900 hours) Factory Overhead Applied 2,250 P 10,710 The following manufacturing activity occurred during the month of June 2021 Purchased direct materials costing, P60,000 Direct labor worked 9,900 hours at P5 per hour Factory Overhead of P2.50 per direct labor hour was applied to production at the end of June 2021 and the following information was gathered in connection with the inventories: Inventory Work-In-Process: Direct materials used P 12,960 Direct labor (1,500 hours) Factory Overhead Applied 7,500 3,750 Р 24,210 Inventory of direct materials P51,000
Gavin Corporation is a manufacturing Company engaged in the production of a single special product. The company is using job order costing system and the accumulated production costs are as follows: The following information is available as of June 1, 2021 P 10,710 Work in Process Direct Materials Inventory 48,600 In analyzing the job order cost sheets, the records disclosed that the composition of the work in process inventory on June 1, 2021 were as follows: Р 3,960 4,500 Direct materials used Direct labor (900 hours) Factory Overhead Applied 2,250 P 10,710 The following manufacturing activity occurred during the month of June 2021 Purchased direct materials costing, P60,000 Direct labor worked 9,900 hours at P5 per hour Factory Overhead of P2.50 per direct labor hour was applied to production at the end of June 2021 and the following information was gathered in connection with the inventories: Inventory Work-In-Process: Direct materials used P 12,960 Direct labor (1,500 hours) Factory Overhead Applied 7,500 3,750 Р 24,210 Inventory of direct materials P51,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Based on the problem on the picture,
REQUIRED: Prepare Statement of Cost of Goods Manufactured
Transcribed Image Text:Gavin Corporation is a manufacturing Company engaged in the production of a
single special product. The company is using job order costing system and the
accumulated production costs are as follows:
The following information is available as of June 1, 2021
P 10,710
Work in Process
Direct Materials Inventory
48,600
In analyzing the job order cost sheets, the records disclosed that the composition
of the work in process inventory on June 1, 2021 were as follows:
Direct materials used
Р 3,960
Direct labor (900 hours)
4,500
2,250
P 10,710
Factory Overhead Applied
The following manufacturing activity occurred during the month of June 2021
Purchased direct materials costing, P60,000
Direct labor worked 9,900 hours at P5 per hour
Factory Overhead of P2.50 per direct labor hour was applied to production
at the end of June 2021 and the following information was gathered in
connection with the inventories:
Inventory Work-In-Process:
Direct materials used
P 12,960
Direct labor (1,500 hours)
Factory Overhead Applied
7,500
3,750
P 24,210
Inventory of direct materials
P51,000
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