efer to Williams Company. What is the prime cost of Job #6?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Refer to Williams Company. What is the prime cost of Job #6?

Williams Company uses a job-order costing system and the following
information is available from its records. The company has three jobs in
process: #6, #9, and #13.
Raw material used
P120,000
Direct labor per hour
P8.50
Overhead applied based on direct labor cost
120%
Direct material was requisitioned as follows for each job respectively: 30
percent, 25 percent, and 25 percent; the balance of the requisitions was
considered indirect. Direct labor hours per job are 2,500; 3,100; and
4,200; respectively. Indirect labor is P33,000. Other actual overhead
costs totaled P36,000.
Refer to Williams Company. What is the prime cost of Job #6?
O P57,250
O P42,250
O P73,250
P82,750
Transcribed Image Text:Williams Company uses a job-order costing system and the following information is available from its records. The company has three jobs in process: #6, #9, and #13. Raw material used P120,000 Direct labor per hour P8.50 Overhead applied based on direct labor cost 120% Direct material was requisitioned as follows for each job respectively: 30 percent, 25 percent, and 25 percent; the balance of the requisitions was considered indirect. Direct labor hours per job are 2,500; 3,100; and 4,200; respectively. Indirect labor is P33,000. Other actual overhead costs totaled P36,000. Refer to Williams Company. What is the prime cost of Job #6? O P57,250 O P42,250 O P73,250 P82,750
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