Manufacturing Company produces special kitchen utensils using the JIT system.   Transactions for the current period are as follow: a.       Raw materials purchased, P1,950,000 b.      Direct labor costs of P2,500,000 were incurred. c.       Actual overhead costs of P3,500,000 were incurred. d.      Conversion costs are directly charged to cost of sales. e.       Finished goods, end amounted to P420,000 of which P200,000 is materials. f.       Finished goods, beg amounted to P600,000 of which P350,000 is materials g.       RIPI, beginning P850,000, of which materials is P600,000. h.      RIPI, ending P750,000, of which materials is P500,000. The cost of sales for the period amounted to: a. P8,230,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Manufacturing Company produces special kitchen utensils using the JIT system.   Transactions for the current period are as follow:

a.       Raw materials purchased, P1,950,000
b.      Direct labor costs of P2,500,000 were incurred.
c.       Actual overhead costs of P3,500,000 were incurred.
d.      Conversion costs are directly charged to cost of sales.
e.       Finished goods, end amounted to P420,000 of which P200,000 is materials.
f.       Finished goods, beg amounted to P600,000 of which P350,000 is materials
g.       RIPI, beginning P850,000, of which materials is P600,000.
h.      RIPI, ending P750,000, of which materials is P500,000.

The cost of sales for the period amounted to:
a. P8,230,000
b. P8,200,000
c. P8,130,000
d. P8,000,000
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