PROBLEM 14: MMM Company started operations in 2019. The following data are abstracted from the company's production and sales records: 2019 2020 2021 Number of units produced Number of units sold Unit production cost Sales revenue 116,250 108,750 P 4.50 P 5.20 P 5.80 900,000 120,000 75,000 101,250 97,500 600,000 975,000 19. Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is:
PROBLEM 14: MMM Company started operations in 2019. The following data are abstracted from the company's production and sales records: 2019 2020 2021 Number of units produced Number of units sold Unit production cost Sales revenue 116,250 108,750 P 4.50 P 5.20 P 5.80 900,000 120,000 75,000 101,250 97,500 600,000 975,000 19. Using the FIFO cost flow assumption, the gross profit for the year ended December 31, 2021 is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![PROBLEM 14: MMM Company started operations in 2019. The following data are abstracted
from the company's production and sales records:
2019
2020
2021
of units
Number
produced
Number of units sold
Unit production cost
116,250
108,750
P 4.50 P 5.20 P 5.80
900,000
120,000
75,000
101,250
97,500
Sales revenue
600,000
975,000
19. Using the FIFO cost flow assumption, the gross profit for the year ended December 31,
2021 is:
PROBLEM 15: The following quarterly cost data have been accumulated for New DDD
Manufacturing, Inc.:
Raw materials, 1/1/2022
Purchases of raw materials
10,000 units at P6.00
8,500 units at P7.00
11,000 units at P7.50
Raw materials transferred to
work in process
Work in process, 1/1/2022
Direct labor
Manufacturing overhead
Work in process, 3/31/2022
21,500 units
5,600 units at P13.50
P 250,000
325,000
4,200 units at P13.75
20. If New Dehi uses the FIFO method for valuing raw materials inventories, compute for the
cost of goods manufactured for the quarter ended March 31, 2022.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F84f967b6-6af2-41ac-bef5-ad5a44a8c71c%2Ffe2e630e-abf7-48a8-b94b-d502c185e201%2Fd81t7lw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:PROBLEM 14: MMM Company started operations in 2019. The following data are abstracted
from the company's production and sales records:
2019
2020
2021
of units
Number
produced
Number of units sold
Unit production cost
116,250
108,750
P 4.50 P 5.20 P 5.80
900,000
120,000
75,000
101,250
97,500
Sales revenue
600,000
975,000
19. Using the FIFO cost flow assumption, the gross profit for the year ended December 31,
2021 is:
PROBLEM 15: The following quarterly cost data have been accumulated for New DDD
Manufacturing, Inc.:
Raw materials, 1/1/2022
Purchases of raw materials
10,000 units at P6.00
8,500 units at P7.00
11,000 units at P7.50
Raw materials transferred to
work in process
Work in process, 1/1/2022
Direct labor
Manufacturing overhead
Work in process, 3/31/2022
21,500 units
5,600 units at P13.50
P 250,000
325,000
4,200 units at P13.75
20. If New Dehi uses the FIFO method for valuing raw materials inventories, compute for the
cost of goods manufactured for the quarter ended March 31, 2022.
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