Premium Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:  Beginning Balance Ending Balance  Raw materials ........ P14,000 22,000  Work in process ...... 27,000 9,000  Finished goods ....... 62,000 77,000 The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At the beginning of the year, the company estimated that it would work 33,000 machine-hours and incur P231,000 in manufacturing overhead cost. The following transactions were recorded for the year: • Raw materials were purchased,

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Premium Company is a manufacturing firm that uses job-order costing. The company's inventory balances
were as follows at the beginning and end of the year:
 Beginning Balance Ending Balance
 Raw materials ........ P14,000 22,000
 Work in process ...... 27,000 9,000
 Finished goods ....... 62,000 77,000
The company applies overhead to jobs using a predetermined overhead rate based on machine-hours. At
the beginning of the year, the company estimated that it would work 33,000 machine-hours and incur
P231,000 in manufacturing overhead cost. The following transactions were recorded for the year:
• Raw materials were purchased, P315,000.
• Raw materials were requisitioned for used in production,P307,000 (P281,000 direct and P26,000 indirect).
• The following employee costs were incurred: direct labor,P377,000; indirect labor,96,000; and administrative
salaries, P172,000.Selling costs, P147,000.
• Factory utility costs, P10,000.

Depreciation for the year was P127,000 of which P120,000 is related to factory Operations and P7,000 is
related to selling and Administrative activities.
• Manufacturing overhead was applied to jobs. The actual level of activity for the year was 34,000 machinehours.
• Sales for the year totalled P1,253,000


What is the net income for the year? 

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