PSMO Company currently uses normal costing method in accumulating the cost of production. The following data were provided for the current year Raw Materials: Inventory, Jan. 1 Issuance to production Purchases on account Factory Labor: Total Factory payroll Factory overhead: Plant depreciation Utilities Repair and Maintenance Indirect Materials Indirect Labor Other overhead costs Work in process: Jan. 1 Dec. 31 P 6,940,000 P 3,370,000 P 7,010,000 P600,000 3,600,000 4,350,000 P 186,000 2,700,000 How much is the total manufacturing costs assuming factory overhead is applied at 70% of direct labor costs 200,000 145,000 145,000 230,000 600,000 105,000 720,000 650,000

PSMO Company currently uses normal costing method in accumulating the cost of production. The following data were provided for the current year Raw Materials: Inventory, Jan. 1 Issuance to production Purchases on account Factory Labor: Total Factory payroll Factory overhead: Plant depreciation Utilities Repair and Maintenance Indirect Materials Indirect Labor Other overhead costs Work in process: Jan. 1 Dec. 31 P 6,940,000 P 3,370,000 P 7,010,000 P600,000 3,600,000 4,350,000 P 186,000 2,700,000 How much is the total manufacturing costs assuming factory overhead is applied at 70% of direct labor costs 200,000 145,000 145,000 230,000 600,000 105,000 720,000 650,000

Name: PSMO Company currently uses normal costing method in accumulating the
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Description: PSMO Company currently uses normal costing method in accumulating the cost ofproduction. The following data were provided for the current yearRaw Materials:Inventory, Jan. 1Issuance to productionPurchases on accountFactory Labor:Total Factory payrol

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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