The balance in Branch Co.'s Work in Process inventory account was P15,000 on June 1 and P18,000 on June 30. The company incurred P30,000 in direct labor cost during June. Branch also issued P25,000 of direct materials to production. Total debits to the Manufacturing Overhead account are P28,000 during June while total credits are P30,000. Which of the following statements is true? *

The balance in Branch Co.'s Work in Process inventory account was P15,000 on June 1 and P18,000 on June 30. The company incurred P30,000 in direct labor cost during June. Branch also issued P25,000 of direct materials to production. Total debits to the Manufacturing Overhead account are P28,000 during June while total credits are P30,000. Which of the following statements is true? *

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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Question

QUESTION 13

Cost Accounting
Choose the answer from the choices

The balance in Branch Co.'s Work in Process inventory account was P15,000 on June 1 and
P18,000 on June 30. The company incurred P30,000 in direct labor cost during June. Branch
also issued P25,000 of direct materials to production. Total debits to the Manufacturing
Overhead account are P28,000 during June while total credits are P30,000. Which of the
following statements is true? *
O a. Finished Goods was debited for P82,000 during the month.
O b. Finished Goods was credited for P83,000 during the month.
O . Manufacturing Overhead was underapplied by P2,000 at the end of the month.
O d. Finished Goods was debited for P85,000 during the month.

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