Holiday Company produces dog food. All direct materials are entered at the beginning of process. Some shrinkage occurs during the production process, but management consider any shrinkage of up to 5% of started during the month to be normal. May 2019 data are as follows: 36,000 pounds 120,000 pounds 126,000 pounds 22,000 pounds Beginning WIP (45% complete) Started during the month Transferred to FG Ending WIP (70% incomplete) Beginning work in process: Materials - P24,000; Conversion – P9,800. Current period costs: Materials – P86,640; Conversion – P54,144. The company uses FIFO Method. How much is the cost of transferred out?

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Q: what is period costs?

A:

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Q: What are the usefulness of the gross margin method?

A:

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A:

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.