Zozibini Company completed               5,000 units of customized souvenir items.                                The product cost per unit:                                                  Direct materials                               P75                               Direct labor                                       60                                  Factory overhead                            45                                                                                                 P180                             However, upon quality inspection, 60 units were found to be spoiled.             The spoiled/damaged goods are sold for P7,200.       The spoilage is due to the employee's fault.                                             Finished goods - beginning balance is P257,300                        The cost of goods sold is 903,800                      How much is the ending balance of finished goods inventory?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Zozibini Company completed               5,000 units of customized souvenir items.                               

The product cost per unit:                                                 

Direct materials                               P75                              

Direct labor                                       60                                 

Factory overhead                            45                                 

                                                               P180                            

However, upon quality inspection, 60 units were found to be spoiled.            

The spoiled/damaged goods are sold for P7,200.      

The spoilage is due to the employee's fault.                                            

Finished goods - beginning balance is P257,300                       

The cost of goods sold is 903,800                     

How much is the ending balance of finished goods inventory?         

 

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