If FIFO Method is used, the costs of goods manufactured amounted to: For the month of January 2022, PBB Company reported the following production data forFinishing Department. The company is in the first year of operation and uses WAM.Transferred in75,00059,250Transferred out to Finished GoodsIn process, end (1/3 converted)15,750All raw materials are added in the 1st Department while packaging materials are added at theend of the process in this department. Cost data for the Finishing Department this period areas follows:Transferred in unit costP12.70Direct materials unit costs per EUPLabor costs, this departmentApplied overhead, 120% of labor costsP8.50P41,280If FIFO Method is used, the costs of goods manufactured amounted to:

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If FIFO Method is used, the costs of goods manufactured amounted to:

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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Concept explainers

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.

Question

If FIFO Method is used, the costs of goods manufactured amounted to:

For the month of January 2022, PBB Company reported the following production data for
Finishing Department. The company is in the first year of operation and uses WAM.
Transferred in
75,000
59,250
Transferred out to Finished Goods
In process, end (1/3 converted)
15,750
All raw materials are added in the 1st Department while packaging materials are added at the
end of the process in this department. Cost data for the Finishing Department this period are
as follows:
Transferred in unit cost
P12.70
Direct materials unit costs per EUP
Labor costs, this department
Applied overhead, 120% of labor costs
P8.50
P41,280
If FIFO Method is used, the costs of goods manufactured amounted to:

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