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WILMA COMPANY has underpplied overhead of P 45,000 for the year. Before disposition of the underapplied overhead, selected year-end balances from Wilma's accounting records were: 5. Sales 1,200,000 Cost of goods sold Direct materials inventory Work-in-process inventory Finished goods inventory 720,000 56,000 54,000 90,000 Under Wilma's cost accounting system, over- or underapplied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances. In its year-end income statement, Wilma should report CGS of: A P 682,500 В P 684,000 C P 757,500 D P 765,000

WILMA COMPANY has underpplied overhead of P 45,000 for the year. Before disposition of the underapplied overhead, selected year-end balances from Wilma's accounting records were: 5. Sales 1,200,000 Cost of goods sold Direct materials inventory Work-in-process inventory Finished goods inventory 720,000 56,000 54,000 90,000 Under Wilma's cost accounting system, over- or underapplied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances. In its year-end income statement, Wilma should report CGS of: A P 682,500 В P 684,000 C P 757,500 D P 765,000

FINANCIAL ACCOUNTING
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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5. WILMA COMPANY has underpplied overhead of P 45,000 for the year. Before disposition of the underapplied overhead, selected year-end balances from Wilma's accounting records were: Sales 1,200,000 Cost of goods sold Direct materials inventory Work-in-process inventory Finished goods inventory 720,000 56,000 54,000 90,000 Under Wilma's cost accounting system, over- or underapplied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances. In its year-end income statement, Wilma should report CGS of: A P 682,500 P 684,000 C P 757,500 D P 765,000 A manufacturer employs a job-order cost system. All jobs ordinarily pass through all three-production depart- ments, and Job 101 and Job 102 were completed during the current month 6. Production Departments Direct Labor Rate Mfg. Overhead Application Rates Department 1 12.00 150% direct materials cost Department 2 18.00 P 8.00 per machine hour Department 3 15.00 200% of direct labor cost JЮВ 101 JОВ 102 JЮВ 103 Beginning work in process P 25,500 P 32,400 P Direct materials 26,000 P 5,000 P Department 1 P 40,000 P 58,000 Department 2 P 3,000 P 14,000 Department 3 P Direct labor (Direct Labor Hours) Department 1 500 400 300 partment 2 200 250 350 Department 3 1,500 1,800 2,500 Machine hour (Machine Hours) Department 1 Department 2 Department 3 1,200 1,500 2,700 150 300 200 The cost of completed JOB 101 is A P 131,500 B P 189,700 C P202,600 D P215,200
Transcribed Image Text:5. WILMA COMPANY has underpplied overhead of P 45,000 for the year. Before disposition of the underapplied overhead, selected year-end balances from Wilma's accounting records were: Sales 1,200,000 Cost of goods sold Direct materials inventory Work-in-process inventory Finished goods inventory 720,000 56,000 54,000 90,000 Under Wilma's cost accounting system, over- or underapplied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances. In its year-end income statement, Wilma should report CGS of: A P 682,500 P 684,000 C P 757,500 D P 765,000 A manufacturer employs a job-order cost system. All jobs ordinarily pass through all three-production depart- ments, and Job 101 and Job 102 were completed during the current month 6. Production Departments Direct Labor Rate Mfg. Overhead Application Rates Department 1 12.00 150% direct materials cost Department 2 18.00 P 8.00 per machine hour Department 3 15.00 200% of direct labor cost JЮВ 101 JОВ 102 JЮВ 103 Beginning work in process P 25,500 P 32,400 P Direct materials 26,000 P 5,000 P Department 1 P 40,000 P 58,000 Department 2 P 3,000 P 14,000 Department 3 P Direct labor (Direct Labor Hours) Department 1 500 400 300 partment 2 200 250 350 Department 3 1,500 1,800 2,500 Machine hour (Machine Hours) Department 1 Department 2 Department 3 1,200 1,500 2,700 150 300 200 The cost of completed JOB 101 is A P 131,500 B P 189,700 C P202,600 D P215,200
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