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FINANCIAL ACCOUNTING
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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Topic: Cost allocation

The ABC garments factory produces two type of jacket, Denim and Polyester. The research and development team is composed of two Product Engineer experts in making denim and polyester jacket. The given information for product development shown below. Product Engineer 1 salary Product Engineer 2 salary 22,000 22,000 Transportation expense of Product Engineer 1 5,000 Transportation expense of Product Engineer 2 Direct material used in sample making for Denim jacket 5,000 10,000 Direct material used in sample making for Polyester jacket Machine electricity consumption (in Php) 9,000 1,400 The demand for denim jacket in color black is 4,000 pieces, while the color gray is 2,000 pieces. The polyester jacket demand is 5,000 pieces. The total sales of Denim jacket (black and gray) is Php 65, o00 and Php 55,550 in polyester jacket. The Company owner want to determine the minimum factory overheads cost among the two type of jacket.
Transcribed Image Text:The ABC garments factory produces two type of jacket, Denim and Polyester. The research and development team is composed of two Product Engineer experts in making denim and polyester jacket. The given information for product development shown below. Product Engineer 1 salary Product Engineer 2 salary 22,000 22,000 Transportation expense of Product Engineer 1 5,000 Transportation expense of Product Engineer 2 Direct material used in sample making for Denim jacket 5,000 10,000 Direct material used in sample making for Polyester jacket Machine electricity consumption (in Php) 9,000 1,400 The demand for denim jacket in color black is 4,000 pieces, while the color gray is 2,000 pieces. The polyester jacket demand is 5,000 pieces. The total sales of Denim jacket (black and gray) is Php 65, o00 and Php 55,550 in polyester jacket. The Company owner want to determine the minimum factory overheads cost among the two type of jacket.
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