This topic is about Cost Accounting. Please check the picture for the problem.Requirement: Determine the followingNet IncomeDirect Product CostIndirect Product CostConversion CostThank you! You are given the following information from Alexandria Mfg Company as of December 31,202A;Sales, P205,000; selling and administrative expenses, P83,000; purchases of rawmaterials, P20,0003; direct labor, P15,000; factory overhead, P32,000.The inventories are:1. Raw materials, beg., P7,000; end, P5,0002. Work in process, beg., P14,000; end, P11,0003. Finished goods, beg., P15,000; end, P19,000

= Sales - purchases of raw materials- opening inventories + closing inventories - direct labor -…

Answered: pic is about Cost Accounting. Please…

pic is about Cost Accounting. Please check the picture for the problem. Requirement: Determine the following Net Income Direct Product Cost Indirect Product Cost Conversion Cost

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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Question

This topic is about Cost Accounting. Please check the picture for the problem.

Requirement: Determine the following

Net Income
Direct Product Cost
Indirect Product Cost
Conversion Cost

Thank you!

You are given the following information from Alexandria Mfg Company as of December 31,
202A;
Sales, P205,000; selling and administrative expenses, P83,000; purchases of raw
materials, P20,0003; direct labor, P15,000; factory overhead, P32,000.
The inventories are:
1. Raw materials, beg., P7,000; end, P5,000
2. Work in process, beg., P14,000; end, P11,000
3. Finished goods, beg., P15,000; end, P19,000

Expert Solution

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Step 1 Net Income = 137,000

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Step 2 Direct Product Cost = P35000

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Step 3 Indirect cost P115,000

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Step 4 Conversion cost = P130000

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