Red Company uses normal costing. During the year ended December 31, 2019, the following informationwere made available:- Total manufacturing costs incurred during the year, P2,200,000;Cost of goods manufactured amounted to P1,940,000;Factory Overhead is applied to production at 80% of direct labor cost;Applied Factory Overhead during the year amounted to 30% of total manufacturing cost;Beginning work-in-process inventory was 75% of the work-in-process at the end.Compute for the cost of direct materials used for the year ended December 31, 2019. Plato Company is to submit a bid on the production of 22,500 ceramic plates. It is estimated that the costof materials will be P26,000 and the cost of direct labor will be P30,000. Factory overhead is applied atP2.70 per direct labor hour in the Molding Department and at 35% of the direct labor cost in the DecoratingDepartment. It is estimated that 2,000 direct labor hours, at a cost of P18,000 will be required in theMolding Department. The company wants a markup of 45% of its total production cost.How much will the company bid for the ceramic plates?

Name: Red Company uses normal costing. During the year ended December 31, 2
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Description: Red Company uses normal costing. During the year ended December 31, 2019, the following informationwere made available:- Total manufacturing costs incurred during the year, P2,200,000;Cost of goods manufactured amounted to P1,940,000;Factory Overhea

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Red Company uses normal costing. During the year ended December 31, 2019, the following information were made available: Total manufacturing costs incurred during the year, P2,200,000; Cost of goods manufactured amounted to P1,940,000; - Factory Overhead is applied to production at 80% of direct labor cost; Applied Factory Overhead during the year amounted to 30% of total manufacturing cost; Beginning work-in-process inventory was 75% of the work-in-process at the end. Compute for the cost of direct materials used for the year ended December 31, 2019.

Red Company uses normal costing. During the year ended December 31, 2019, the following information were made available: Total manufacturing costs incurred during the year, P2,200,000; Cost of goods manufactured amounted to P1,940,000; - Factory Overhead is applied to production at 80% of direct labor cost; Applied Factory Overhead during the year amounted to 30% of total manufacturing cost; Beginning work-in-process inventory was 75% of the work-in-process at the end. Compute for the cost of direct materials used for the year ended December 31, 2019.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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