MV Company showed cost of goods sold of P4,320,000 in the statement of comprehensive income after the first year of operations. The total manufacturing cost comprised the following: Materials used 50% Direct labor incurred 30% Manufacturing overhead 20% Goods in process at year-end amounted to 10% of the total manufacturing cost. Finished goods at year-end amounted to 20% of the cost of goods manufactured. What is the amount of the direct labor cost incurred?
MV Company showed cost of goods sold of P4,320,000 in the statement of comprehensive income after the first year of operations. The total manufacturing cost comprised the following: Materials used 50% Direct labor incurred 30% Manufacturing overhead 20% Goods in process at year-end amounted to 10% of the total manufacturing cost. Finished goods at year-end amounted to 20% of the cost of goods manufactured. What is the amount of the direct labor cost incurred?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2CMA
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MV Company showed cost of goods sold of P4,320,000 in the statement of comprehensive
income after the first year of operations.
The total manufacturing cost comprised the following:
Materials used 50%
Direct labor incurred 30%
Manufacturing overhead 20%
Goods in process at year-end amounted to 10% of the total manufacturing cost. Finished goods at year-end amounted to 20% of the cost of goods manufactured.
What is the amount of the direct labor cost incurred?
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