The Kamandag Corporation, began operations on October 1. It employs a job ordercosting system. Overhead is charged at a normal rate of P2.50 per direct labor hour.The actual operations for the month of October are summarized as follows:1. Purchase of raw material, 25,000 pieces @ P1.20/piece2. Material and labor costs charged to production:Job No.UnitsMaterialDirect labor cost Direct laborhours00110,000P4,000P6,0003,0000028,8003,6005,4002,70000316,0007,0009,0004,5000048,0003,2004,8002,40000520,0008,0003,6001,8001. Actual overhead costs inccured during October amounted to P33,5002. Completed jobs: 001, 002, 003, and 0043. Sales for a month of October amounted to P105.000. All units produced on Jobs101, 102, and 103 were sold. 1. Actual overhead costs inccured during October amounted to P33,5002. Completed jobs: 001, 002, 003, and 0043. Sales for a month of October amounted to P105,000. All units produced on Jobs101, 102, and 103 were sold.What is the balance of the finished goods inventory account on October 31?

Solution: Balance in finished goods inventory account on October 31 = Cost of Job 004

Answered: The Kamandag Corporation, began…

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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