P. Calayan, general manager of a highly automated coffee production plant in Laguna, Ilocos Sur, has provided the following information for transactions that occurred during October. The production plant uses a JIT Costing System. a. Raw materials costing P300,000 were purchased. b. All materials costing P300,000 were requisitioned for production. c. Direct labor costs of P200,000 were incurred. d. Actual factory overhead costs amount to P995,000 e. Applied factory overhead costs totaled P1,300,000. This includes direct labor cost. f. All units are completed and immediately sold. Required: 1. Determine the October 31 balance in Cost of Goods Sold account. No adjustment has been made for overapplied or underapplied conversion cost. 2. Compute for the overapplied or underapplied conversion costs for the month. 3. Compute for the Cost of Goods Sold after all transactions-adjustments have been completed.
P. Calayan, general manager of a highly automated coffee production plant in Laguna, Ilocos
Sur, has provided the following information for transactions that occurred during October. The
production plant uses a JIT Costing System.
a. Raw materials costing P300,000 were purchased.
b. All materials costing P300,000 were requisitioned for production.
c. Direct labor costs of P200,000 were incurred.
d. Actual
e. Applied factory overhead costs totaled P1,300,000. This includes direct labor cost.
f. All units are completed and immediately sold.
Required:
1. Determine the October 31 balance in Cost of Goods Sold account. No adjustment
has been made for overapplied or underapplied conversion cost.
2. Compute for the overapplied or underapplied conversion costs for the month.
3. Compute for the Cost of Goods Sold after all transactions-adjustments have been
completed.
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