Problem 1-7. Jansport Manufacturing Company currently uses normal costing% method in accumulating the cost of production. The following data were provided for the current year: Factory Labor: Total Factory payroll Raw Materials: P2,700,000 450,000 Inventory, Jan 1 4,500,000 3,600,000 Purchases on account Issuance to production Factory overhead: Depreciation Maintenance 220,000 125,000 145,000 230,000 105,000 600,000 Utilities Indirect materials Miscellaneous overhead Indirect labor Work in process: Beginning inventory Ending inventory 720,000 650,000 Compute for the following: a) Total factory costs assuming factory overhead is applied at 70% of direct labor costs. b) Cost of sales assuming finished goods inventory is increased by P186,000
Problem 1-7. Jansport Manufacturing Company currently uses normal costing% method in accumulating the cost of production. The following data were provided for the current year: Factory Labor: Total Factory payroll Raw Materials: P2,700,000 450,000 Inventory, Jan 1 4,500,000 3,600,000 Purchases on account Issuance to production Factory overhead: Depreciation Maintenance 220,000 125,000 145,000 230,000 105,000 600,000 Utilities Indirect materials Miscellaneous overhead Indirect labor Work in process: Beginning inventory Ending inventory 720,000 650,000 Compute for the following: a) Total factory costs assuming factory overhead is applied at 70% of direct labor costs. b) Cost of sales assuming finished goods inventory is increased by P186,000
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Problem 1-7. Jansport Manufacturing Company currently uses normal costing
method in accumulating the cost of production. The following data were provided
for the current year:
Factory Labor:
Total Factory payroll
P2,700,000
Raw Materials:
450,000
Inventory, Jan 1
4,500,000
3,600,000
Purchases on account
Issuance to production
Factory overhead:
Depreciation
Maintenance
220,000
125,000
145,000
230,000
105,000
600,000
Utilities
Indirect materials
Miscellaneous overhead
Indirect labor
Work in process:
Beginning inventory
Ending inventory
720,000
650,000
Compute for the following:
a) Total factory costs assuming factory overhead is applied at 70% of direct labor
costs.
b) Cost of sales assuming finished goods inventory is increased by P186,000
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