The work-in process inventory of Mirage Manufacturing was completely destroyed by fire on May 1, 2019. The physical inventory count as of that date is presented below May 1 January 1 P 40,000 P 60,000 101,500 140,000 125,000 Raw Materials Work in Process Finished Goods Sales from January 1 to April 30 were P300,000. Purchases of raw materials were P100,000 and freight on purchases, P10,000. Direct labor during the period was P80,000. It was agreed with the insurance adjusters that an average gross profit rate of 35% be used and that manufacturing overhead was 50% of direct labor cost.
The work-in process inventory of Mirage Manufacturing was completely destroyed by fire on May 1, 2019. The physical inventory count as of that date is presented below May 1 January 1 P 40,000 P 60,000 101,500 140,000 125,000 Raw Materials Work in Process Finished Goods Sales from January 1 to April 30 were P300,000. Purchases of raw materials were P100,000 and freight on purchases, P10,000. Direct labor during the period was P80,000. It was agreed with the insurance adjusters that an average gross profit rate of 35% be used and that manufacturing overhead was 50% of direct labor cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Raw materials used for the period
P 50,000
P 70,000
P 80,000
P 90,000
Transcribed Image Text:The work-in process inventory of Mirage Manufacturing was completely destroyed by fire on May 1,
2019. The physical inventory count as of that date is presented below
January 1
P 40,000 P 60,000
101,500
140,000
May 1
Raw Materials
Work in Process
Finished Goods
125,000
Sales from January 1 to April 30 were P300,000. Purchases of raw materials were P100,000 and
freight on purchases, P10,000. Direct labor during the period was P80,000. It was agreed with the
insurance adjusters that an average gross profit rate of 35% be used and that manufacturing overhead
was 50% of direct labor cost.
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