Reference no: EM132667106

The following events took place at the Dream Company for the current year.

Purchased P120, 000 in direct materials

Incurred labor costs as follows

Direct labor, P72, 000

Supervisor labor, P26, 000

Purchased manufacturing equipment for P94, 000

Other manufacturing overhead (excluding supervisor labor) was P88, 000

Transferred 80% of the materials to the manufacturing assembly line

Completed work on 70% of the goods in process. Costs are assigned equally across all work in process

Sold 60% of the completed goods

There were no beginning balances in the inventory accounts. All costs incurred were debited to the appropriate account and credited to accounts payable.

Problem 1: Provide the following:

1. Ending balance in direct materials inventory

2. The cost of goods sold