The records of ABC Corporation revealed the following data for the current year. Work in Process P73,150 Finished Goods P115,000 Cost of Goods Sold P133,650 Direct Labor P111,600 Direct Material P84,200 Assume that ABC has underapplied overhead of P37,200 and that this amount is material. How much is needed to close the overhead account to Finished Goods? (Round decimals to nearest whole percent.)

The records of ABC Corporation revealed the following data for the current year. Work in Process P73,150 Finished Goods P115,000 Cost of Goods Sold P133,650 Direct Labor P111,600 Direct Material P84,200 Assume that ABC has underapplied overhead of P37,200 and that this amount is material. How much is needed to close the overhead account to Finished Goods? (Round decimals to nearest whole percent.)

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

The records of ABC Corporation revealed the following data for the current year.

Work in Process P73,150

Finished Goods P115,000

Cost of Goods Sold P133,650

Direct Labor P111,600

Direct Material P84,200

Assume that ABC has underapplied overhead of P37,200 and that this amount is material. How much is needed to close the overhead account to Finished Goods? (Round decimals to nearest whole percent.)

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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