On December 1, the Diamond Company had the following inventories; materials, P 24,000 ; work in process, P 12,000; and finished goods; P 36,000. During the month, materials purchases totaled P 56,000. Direct labor for December was P 40,000 , at a uniform wage of P 6.40 per hour. Marketing and administrative expenses for the month amounted to 10% of net sales. Inventories on December 31, were as follows : materials P 20,000 ;work in process ,P8,000; and finished goods , P 40,000. Net sales for December totaled P 200,000. Factory overhead is apply on the basis of P 8 per direct labor hour.
On December 1, the Diamond Company had the following inventories; materials, P 24,000 ; work in process, P 12,000; and finished goods; P 36,000. During the month, materials purchases totaled P 56,000. Direct labor for December was P 40,000 , at a uniform wage of P 6.40 per hour. Marketing and administrative expenses for the month amounted to 10% of net sales. Inventories on December 31, were as follows : materials P 20,000 ;work in process ,P8,000; and finished goods , P 40,000. Net sales for December totaled P 200,000. Factory overhead is apply on the basis of P 8 per direct labor hour.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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how much is net income for december
Transcribed Image Text:On December 1, the Diamond Company had the following inventories ; materials,
P 24,000 ; work in process, P 12,000; and finished goods ; P 36,000. During
the month, materials purchases totaled P 56,000. Direct labor for December
was P 40,000, at a uniform wage of P 6.40 per hour. Marketing and
administrative expenses for the month amounted to 10% of net sales. Inventories
on December 31, were as follows : materials P 20,000 ;work in process ,P8,000;
and finished goods , P 40,000. Net sales for December totaled P 200,000.
Factory overhead is apply on the basis of P 8 per direct labor hour.
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