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How much is the cost of goods manufactured? JR Company uses the normal cost system. The company applies overhead using a predetermined overhead rate using machine hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and incur P176,000 in factory overhead costs. Following are transactions for the month of February. [a] Purchased raw materials from CZ company, P555,000. Terms 2/10,n/60. [b] Materials were requisitioned for production, P431,000 direct and 13,000 indirect. [c] Returned materials to CZ company, P5,000 (gross) on the 3rd day after purchase. [d] Paid payroll for the week: Earnings Таx P220,000 24,000 2,000 5,000 13,000 SS 13,480 5,000 1,160 | 2,500 PHIC Direct Indirect 40,000 Selling Admin [e] Depreciation of factory machine is P119,000 (f) Factory utilities costs incurred, P24,000. (e] Overhead was applied to production using 47,000 800 50,000 1,230 70,000 6,850 2,430 hours. [h] P700,000 worth of goods were completed. [i] Paid utilities. ) Sold 75% of completed goods at 60% above cost.

How much is the cost of goods manufactured? JR Company uses the normal cost system. The company applies overhead using a predetermined overhead rate using machine hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and incur P176,000 in factory overhead costs. Following are transactions for the month of February. [a] Purchased raw materials from CZ company, P555,000. Terms 2/10,n/60. [b] Materials were requisitioned for production, P431,000 direct and 13,000 indirect. [c] Returned materials to CZ company, P5,000 (gross) on the 3rd day after purchase. [d] Paid payroll for the week: Earnings Таx P220,000 24,000 2,000 5,000 13,000 SS 13,480 5,000 1,160 | 2,500 PHIC Direct Indirect 40,000 Selling Admin [e] Depreciation of factory machine is P119,000 (f) Factory utilities costs incurred, P24,000. (e] Overhead was applied to production using 47,000 800 50,000 1,230 70,000 6,850 2,430 hours. [h] P700,000 worth of goods were completed. [i] Paid utilities. ) Sold 75% of completed goods at 60% above cost.

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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How much is the cost of goods manufactured? JR Company uses the normal cost system. The company applies overhead using a predetermined overhead rate using machine hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and incur P176,000 in factory overhead costs. Following are transactions for the month of February. [a] Purchased raw materials from CZ company, P555,000. Terms 2/10,n/60. (b] Materials were requisitioned for production, P431,000 direct and 13,000 indirect. [c] Returned materials to CZ company, P5,000 (gross) on the 3rd day after purchase. [d] Paid payroll for the week: PHIC 13,480 5,000 Earnings Тах SS Direct P220,000 24,000 Indirect 40,000 Selling Admin [e] Depreciation of factory machine is P119,000 (f) Factory utilities costs incurred, P24,000. (8] Overhead was applied to production using 47,000 800 2,000 5,000 1,160 2,500 50,000 1,230 70,000 13,000 6,850 2,430 hours. [h] P700,000 worth of goods were completed. (i) Paid utilities. G) Sold 75% of completed goods at 60% above cost.
Transcribed Image Text:How much is the cost of goods manufactured? JR Company uses the normal cost system. The company applies overhead using a predetermined overhead rate using machine hours. At the beginning of the year, the company estimated that it would work 44,000 machine hours and incur P176,000 in factory overhead costs. Following are transactions for the month of February. [a] Purchased raw materials from CZ company, P555,000. Terms 2/10,n/60. (b] Materials were requisitioned for production, P431,000 direct and 13,000 indirect. [c] Returned materials to CZ company, P5,000 (gross) on the 3rd day after purchase. [d] Paid payroll for the week: PHIC 13,480 5,000 Earnings Тах SS Direct P220,000 24,000 Indirect 40,000 Selling Admin [e] Depreciation of factory machine is P119,000 (f) Factory utilities costs incurred, P24,000. (8] Overhead was applied to production using 47,000 800 2,000 5,000 1,160 2,500 50,000 1,230 70,000 13,000 6,850 2,430 hours. [h] P700,000 worth of goods were completed. (i) Paid utilities. G) Sold 75% of completed goods at 60% above cost.
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