Interworld Colleges Foundation Inc.

Burgos St, Paniqui,Tarlac

COLLEGE OF BUSINESS AND ACCOUNTANCY

Data about Genesis Company production and inventories for the month of October are as follows:

Purchases (direct Materials P143,440

Freight in 5,000

Purchase Return and Allowances 2,440

Actual Factory Overhead 120,000

Direct Labor 175,000

Inventories: October 1 October 31

Finished Goods P68,000 P56,000

Work in Process 110,000 135,000

Direct material 52,000 44,000

Genesis Company applies Factory overhead to production at 80% of Direct Labor cost. Over or
underapplied overhead is close to cost of good sold at the year end. The company accounting period is
on the calendar year end basis.

Required: compute the following

1. The Prime Cost

2. The Conversion cost

3. the Total manufacturing cost

4. The Cost of Goods Sold transferred to the Finished Goods inventory account

5. The Cost of Good Sold for the month of October

6. the amount of Over or Under applied for the month of October