On September 25, 2020, a hurricane destroyed the work in process inventory of Biloxi Corporation. At that time, the company was in the process of manufacturing two custom jobs (B325 and Q428). Although all of Biloxi's on-site accounting records were destroyed, the following information is available from some backup off -site records: cements 55 Biloxi Corp. applies overhead at the rate of 85 percent of direct labor cost. The cost of goods sold for the company averages 75 percent of selling price. Sales from January 1 to the date of the hurricane totaled P1,598,000. The company's wage rate for production employees is P12.90 per hour. A total of 25,760 direct labor hours were recorded from January 1 through September 25. • As of September 25, P21,980 of direct material and 128 hours of direct labor had been recorded for Job B325. Also at that time, P14,700 of direct material and 240 hours of direct labor had been recorded for Job Q428. January 1, 2020, inventories were as follows: P19,500 of Raw Material and P68,900 of Finished Goods. Raw materials purchased during 2020 totaled P843,276. • The amount of Work in Process Inventory at January 1, 2020, was P14,600. Jobs B325 and Q428 were not in process on January 1. One job, R91, was completed and in the warehouse awaiting shipment on September 25. The total cost of this job was P165,600. Raw materials recovered after the hurricane were consist of goods costing P50,000 of which P20,000 were greatly affected by the hurricane and can only be sold as scrap at P1,000. Reading list search Determine the following amounts: Cost of goods manufactured during the year

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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On September 25, 2020, a hurricane destroyed the work in process inventory of Biloxi Corporation. At that time, the company was in the process of manufacturing two custom jobs (B325 and Q428). Although all of Biloxi's on-site accounting records were destroyed, the following information is available from some backup off -site records: cements 55 Biloxi Corp. applies overhead at the rate of 85 percent of direct labor cost. The cost of goods sold for the company averages 75 percent of selling price. Sales from January 1 to the date of the hurricane totaled P1,598,000. The company's wage rate for production employees is P12.90 per hour. A total of 25,760 direct labor hours were recorded from January 1 through September 25. • As of September 25, P21,980 of direct material and 128 hours of direct labor had been recorded for Job B325. Also at that time, P14,700 of direct material and 240 hours of direct labor had been recorded for Job Q428. January 1, 2020, inventories were as follows: P19,500 of Raw Material and P68,900 of Finished Goods. Raw materials purchased during 2020 totaled P843,276. • The amount of Work in Process Inventory at January 1, 2020, was P14,600. Jobs B325 and Q428 were not in process on January 1. One job, R91, was completed and in the warehouse awaiting shipment on September 25. The total cost of this job was P165,600. Raw materials recovered after the hurricane were consist of goods costing P50,000 of which P20,000 were greatly affected by the hurricane and can only be sold as scrap at P1,000. Reading list search Determine the following amounts: Cost of goods manufactured during the year

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