The following manufacturing activity occurred during the month of June 2020: Purchased direct materials costing P60,000. Direct labor worked 9,900 hours at P5 per hour. Factory overhead of P2.50 per direct labor hour was applied to production. At the end of June 2020, the following information was gathered in connection with the inventories: Inventory of work in process Direct materials used P12,960 7,500 Direct labor (1,500 hours) Factory overhead applied 3,750 P24,210 P51,000 Inventory of direct materials Compute the cost of goods manufactured: P142,560 O P118,350 O P131,850 O P108,600
The following manufacturing activity occurred during the month of June 2020: Purchased direct materials costing P60,000. Direct labor worked 9,900 hours at P5 per hour. Factory overhead of P2.50 per direct labor hour was applied to production. At the end of June 2020, the following information was gathered in connection with the inventories: Inventory of work in process Direct materials used P12,960 7,500 Direct labor (1,500 hours) Factory overhead applied 3,750 P24,210 P51,000 Inventory of direct materials Compute the cost of goods manufactured: P142,560 O P118,350 O P131,850 O P108,600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The following manufacturing activity occurred during the month of June 2020:
Purchased direct materials costing P60,000.
Direct labor worked 9,900 hours at P5 per hour.
Factory overhead of P2.50 per direct labor hour was applied to production. At the end of June 2020,
the following information was gathered in connection with the inventories:
Inventory of work in process
Direct materials used
P12.960
7,500
Direct labor (1,500 hours)
Factory overhead applied
3,750
P24,210
P51,000
Inventory of direct materials
Compute the cost of goods
manufactured:
P142,560
O P118,350
P131,850
P108,600
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