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 Earnings P220,000 Таx SS 13,480| 5,000 1,160 Direct 24,000 Indirect 40,000 2,000 800 Selling 50,000 5,000 2,500 1,230 70,000 [e] Depreciation of factory machine is P119,000 [f] Factory utilities costs incurred, P24,000. [g] Overhead was applied to production using 47,000 Admin 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. 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 Earnings P220,000 Таx SS 13,480| 5,000 1,160 Direct 24,000 Indirect 40,000 2,000 800 Selling 50,000 5,000 2,500 1,230 70,000 [e] Depreciation of factory machine is P119,000 [f] Factory utilities costs incurred, P24,000. [g] Overhead was applied to production using 47,000 Admin 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. How much is the cost of goods manufactured?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![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
P220,000
Таx
SS
PHIC
Direct
24,000
13,480
5,000
Indirect
40,000
2,000
1,160
800
Selling
50,000
5,000
2,500
1,230
Admin
6,850
2,430
70,000
[e] Depreciation of factory machine is P119,000
[f] Factory utilities costs incurred, P24,000.
[g] Overhead was applied to production using 47,000
13,000
hours.
[h] P700,000 worth of goods were completed.
[i) Paid utilities.
(j] Sold 75% of completed goods at 60% above cost.
How much is the cost of goods manufactured?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc6401b65-afb3-4f0e-b4d5-15eb9a019ab5%2F71e7d064-b85f-4bb9-a24c-792772fe2275%2Fr7sfvnr_processed.png&w=3840&q=75)
Transcribed Image Text: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
P220,000
Таx
SS
PHIC
Direct
24,000
13,480
5,000
Indirect
40,000
2,000
1,160
800
Selling
50,000
5,000
2,500
1,230
Admin
6,850
2,430
70,000
[e] Depreciation of factory machine is P119,000
[f] Factory utilities costs incurred, P24,000.
[g] Overhead was applied to production using 47,000
13,000
hours.
[h] P700,000 worth of goods were completed.
[i) Paid utilities.
(j] Sold 75% of completed goods at 60% above cost.
How much is the cost of goods manufactured?
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