BM1710

Name MERCADO, KATHLEEN O. _ Section BSA-501 Date 10/01/2021 _

I. PROBLEM SOLVING (20 points)

Perform what is being asked. Submit your answers on the drop box provided for this topic.

1. WWW Company had the following inventory balances at the beginning and end of August for the current
year:

August 01 August 31
Raw Materials Inventory P 58,000 P 84,000
Work in Process Inventory 372,000 436,000
Finished Goods Inventory 224,000 196,000

All raw materials are direct to the production process. The followi6ng information is the manufacturing costs
for August:
• Cost of raw material used is P612,000
• Direct labor cost worth P748,000
• Manufacturing overhead: P564,00
How much is the cost of goods manufactured and sold for August?

Raw Materials used in production P 612,000

Direct Labor 748,000
Manufacturing Overhead 564,000
TOTAL MANUFACTURING COST 1,924,000
Add: Beginning Work in Process Inventory 372,000
Less: Ending Work in Process Inventory (436,000)
COST OF GOODS MANUFACTURED P 1,860,000

Beginning Finished Goods Inventory P 224,000

Add: Cost of Goods Manufactured 1,860,000
COST OF GOODS AVAILABLE FOR SALE 2,084,000
Less: Ending Finished Goods Inventory (196,000)
COST OF GOODS SOLD P 1,888,000

02 eLMS Quiz 1 *Property of STI

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