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Dynamic Company has only Job 844 in process on March 1 of the current year. The job has been charged with P2,000 of direct material cost, P2,500 of direct labor cost, and P1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate based on direct labor cost. Any under- or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): Purchased during the month Used in production P31,500 P30,500 Labor: Direct labor hours worked during the month Direct labor cost incurred Indirect labor costs incurred 2,500 P26,500 P5,500 Manufacturing overhead costs incurred (total) P18,500 Inventories: Raw materials (all direct) March 31 Work in process, March 3, contains 5,150 of direct materials and contains P5,500 of direct labor P7,500 cost. Jared Company provided the inventory balances and manufacturing cost data for the month of January below: Inventories January 1 P 30,000 15,000 65,000 January 31 P 40,000 20,000 50,000 Direct materials Work in process Finished goods Factory overhead applied Cost of goods manufactured Direct materials used Month of January P150,000 515,000 190,000 Actual factory overhead 144,000 Under Jared's cost system, any over- and underapplied overhead is closed to the cost of goods sold account at the end of the calendar year. What would cost of goods sold be if under- or overapplied overhead were closed to cost of goods sold?

Dynamic Company has only Job 844 in process on March 1 of the current year. The job has been charged with P2,000 of direct material cost, P2,500 of direct labor cost, and P1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate based on direct labor cost. Any under- or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): Purchased during the month Used in production P31,500 P30,500 Labor: Direct labor hours worked during the month Direct labor cost incurred Indirect labor costs incurred 2,500 P26,500 P5,500 Manufacturing overhead costs incurred (total) P18,500 Inventories: Raw materials (all direct) March 31 Work in process, March 3, contains 5,150 of direct materials and contains P5,500 of direct labor P7,500 cost. Jared Company provided the inventory balances and manufacturing cost data for the month of January below: Inventories January 1 P 30,000 15,000 65,000 January 31 P 40,000 20,000 50,000 Direct materials Work in process Finished goods Factory overhead applied Cost of goods manufactured Direct materials used Month of January P150,000 515,000 190,000 Actual factory overhead 144,000 Under Jared's cost system, any over- and underapplied overhead is closed to the cost of goods sold account at the end of the calendar year. What would cost of goods sold be if under- or overapplied overhead were closed to cost of goods sold?

Principles of Cost Accounting
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 15E: The books of Petry Products Co. revealed that the following general journal entry had been made at...
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Dynamic Company has only Job 844 in process on March 1 of the current year. The job has been charged with P2,000 of direct material cost, P2,500 of direct labor cost, and P1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate based on direct labor cost. Any under- or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): Purchased during the month Used in production P31,500 P30,500 Labor: Direct labor hours worked during the month Direct labor cost incurred Indirect labor costs incurred 2,500 P26,500 P5,500 Manufacturing overhead costs incurred (total) P18,500 Inventories: Raw materials (all direct) March 31 Work in process, March 3, contains 5,150 of direct materials and contains P5,500 of direct labor P7,500 cost.
Transcribed Image Text:Dynamic Company has only Job 844 in process on March 1 of the current year. The job has been charged with P2,000 of direct material cost, P2,500 of direct labor cost, and P1,750 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate based on direct labor cost. Any under- or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During March, the following activity and amounts were recorded by the company: Raw materials (all direct materials): Purchased during the month Used in production P31,500 P30,500 Labor: Direct labor hours worked during the month Direct labor cost incurred Indirect labor costs incurred 2,500 P26,500 P5,500 Manufacturing overhead costs incurred (total) P18,500 Inventories: Raw materials (all direct) March 31 Work in process, March 3, contains 5,150 of direct materials and contains P5,500 of direct labor P7,500 cost.
Jared Company provided the inventory balances and manufacturing cost data for the month of January below: Inventories January 1 P 30,000 15,000 65,000 January 31 P 40,000 20,000 50,000 Direct materials Work in process Finished goods Factory overhead applied Cost of goods manufactured Direct materials used Month of January P150,000 515,000 190,000 Actual factory overhead 144,000 Under Jared's cost system, any over- and underapplied overhead is closed to the cost of goods sold account at the end of the calendar year. What would cost of goods sold be if under- or overapplied overhead were closed to cost of goods sold?
Transcribed Image Text:Jared Company provided the inventory balances and manufacturing cost data for the month of January below: Inventories January 1 P 30,000 15,000 65,000 January 31 P 40,000 20,000 50,000 Direct materials Work in process Finished goods Factory overhead applied Cost of goods manufactured Direct materials used Month of January P150,000 515,000 190,000 Actual factory overhead 144,000 Under Jared's cost system, any over- and underapplied overhead is closed to the cost of goods sold account at the end of the calendar year. What would cost of goods sold be if under- or overapplied overhead were closed to cost of goods sold?
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