FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The followung cost data relate to the manufacturing activities of the Kamas Company during the most recent year. Fcatory
Property taxes- factory P1,600
Utilities- factory 2,600
Indirect labor 5,100
Insurance- factory 2,500
Total ACtual FOH costs P24,800
Other costs incurred during the year:
Purchase of raw materials P15,000
Direct labor cost 22,000
Inventories:
Raw materials, beginning P5,000
Raw materials, ending 4,400
Work-in process,beginning 3,500
Work-in process, ending 4,500
The company uses a predetermined overhead rate to charge overhead cost to production. Th erate for the year just completed wa P4.00 per machine- hour; a total of 6,000 machine- hours were recorded for the year. Compute for the cost of goods manufactured for the year.
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