Problem 3. Below are balances and information taken from the records of Bulls Company for the last quarter of the current year: Inventories: October 1 Raw Materials Work in process Finished goods Cost of goods sold Manufacturing overhead P134,000 354,000 594,600 10,800,000 4,200,000 debit 4,600,000credit Supplementary data: (1) During the period, purchases of raw materials totaled P1,093,400 while physical count of raw materials revealed that P250,000 were unused. (2) 39,800 direct labor hours were utilized distributed as follows: (a) 25,000 hours worked on regular time at P67 per hr. (b) 14,000 hours worked at the late shift (c) 800 hours work on overtime, all on regular shift. (c) Overhead is charged to production at 80% of direct labor costs. (d) Actual overhead incurred were P1,420,000. Overhead variance is closed to all accounts with overhead elements only at the end of the year (e) At the end of the year, records show that work in process increased by P80,000 while Finished Goods decreased by P150,000. Required: 1. Determine the total factory payroll for the period, refer to PD 442 for the late shift and overtime premium. 2. Determine the total factory costs.
Problem 3. Below are balances and information taken from the records of Bulls Company for the last quarter of the current year: Inventories: October 1 Raw Materials Work in process Finished goods Cost of goods sold Manufacturing overhead P134,000 354,000 594,600 10,800,000 4,200,000 debit 4,600,000credit Supplementary data: (1) During the period, purchases of raw materials totaled P1,093,400 while physical count of raw materials revealed that P250,000 were unused. (2) 39,800 direct labor hours were utilized distributed as follows: (a) 25,000 hours worked on regular time at P67 per hr. (b) 14,000 hours worked at the late shift (c) 800 hours work on overtime, all on regular shift. (c) Overhead is charged to production at 80% of direct labor costs. (d) Actual overhead incurred were P1,420,000. Overhead variance is closed to all accounts with overhead elements only at the end of the year (e) At the end of the year, records show that work in process increased by P80,000 while Finished Goods decreased by P150,000. Required: 1. Determine the total factory payroll for the period, refer to PD 442 for the late shift and overtime premium. 2. Determine the total factory costs.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 3. Below are balances and information taken from the records of Bulls
Company for the last quarter of the current year:
Inventories: October 1
Raw Materials
Work in process
Finished goods
Cost of goods sold
Manufacturing overhead
P134,000
354,000
594,600
10,800,000
4,200,000 debit
4,600,000credit
Supplementary data:
(1) During the period, purchases of raw materials totaled
P1,093,400 while physical count of raw materials revealed
that P250,000 were unused.
(2) 39,800 direct labor hours were utilized distributed as follows:
(a) 25,000 hours worked on regular time at P67 per hr.
(b) 14,000 hours worked at the late shift
(c) 800 hours work on overtime, all on regular shift.
(c) Overhead is charged to production at 80% of direct labor
costs.
(d) Actual overhead incurred were P1,420,000. Overhead
variance is closed to all accounts with overhead elements
only at the end of the year
(e) At the end of the year, records show that work in process
increased by P80,000 while Finished Goods decreased by
P150,000.
Required:
1. Determine the total factory payroll for the period, refer
to PD 442 for the late shift and overtime premium.
2. Determine the total factory costs.
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