The following inventory information is available for Narcisa Manufacturing Corporation for the year: Beginning Ending Inventories: Raw materials P17,000 P19,000 Work in process 9,000 14,000 Finished goods 11,000 8,000 Total P37,000 P41,000 In addition, the following transactions occurred: a. Raw materials purchased on account, P75,000. b. Incurred factory labor, P80,000, all is direct labor. (Credit Factory Wages Payable). c. Incurred the following overhead costs during the year: Utilities P6,800, Depreciation on manufacturing machinery P8,000, Manufacturing machinery repairs P6,200, Factory insurance P9,000 (Credit Accounts Payable and Accumulated Depreciation). d. Assigned P80,000 of factory labor to jobs. e. Applied P32,000 of overhead to jobs. Required From an analysis of the accounts, compute the following: A. Raw materials used. B. Completed jobs transferred to finished goods. C. Cost of goods sold. D. Under- or overapplied overhead.
The following inventory information is available for Narcisa Manufacturing Corporation
for the year:
Beginning Ending
Inventories:
Raw materials P17,000 P19,000
Work in process 9,000 14,000
Finished goods 11,000 8,000
Total P37,000 P41,000
In addition, the following transactions occurred:
a. Raw materials purchased on account, P75,000.
b. Incurred factory labor, P80,000, all is direct labor. (Credit Factory Wages Payable).
c. Incurred the following overhead costs during the year: Utilities P6,800, Depreciation on
manufacturing machinery P8,000, Manufacturing machinery repairs P6,200, Factory
insurance P9,000 (Credit Accounts Payable and Accumulated Depreciation).
d. Assigned P80,000 of factory labor to jobs.
e. Applied P32,000 of overhead to jobs.
Required
From an analysis of the accounts, compute the following:
A. Raw materials used.
B. Completed jobs transferred to finished goods.
C. Cost of goods sold.
D. Under- or overapplied overhead.
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