Reference no: EM132960195
Problem A - Selected cost data concerning the past fiscal year's operations of the Lotus Co. are presented below:
Beginning Ending
Direct materials P75,000 P80,000
Work in process 80,000 35,000
Finished goods 90,000 110,000
Materials used, P336,000. Total manufacturing costs charged to production during the year (including direct materials, direct labor, and factory overhead applied at the rate of 50% of direct labor cost), P696,000. Cost of goods available for sale, P831,000. Selling and general expenses, P25,000.
Required -
1. What is the amount of direct materials purchased during the year?
2. What is the direct labor cost charged to the production during the year?
3. What is the cost of goods manufactured during the year?
4. What is the cost of goods sold during the year?
Problem B - Following are Manufacturing Co.'s production costs for May 2020:
Direct materials 100,000
Direct labor 80,000
Factory overhead 4,000
Required - What amount of cost should be traced to specific products in the production process?
Problem C - The following information pertains to Kay Co.'s manufacturing operations:
Beginning Ending
Direct materials P30,000 P36,000
Work in process 18,000 12,000
Finished goods 54,000 72,000
Additional information for the month of April:
Direct materials purchased P84,000
Direct labor 60,800
Direct labor rate per hour 7.60
Factory overhead rate per direct labor hour 10.00
Required -
1. For the month of April, prime cost was
2. For the month of April, conversion cost was
Problem D - Dolms Company reported the following the following account information:
Accounts receivable P400,000
Accounts payable 230,000
Bonds payable, due in 10 years 600,000
Cash 200,000
Interest payable, due in 3 months 20,000
Inventory 800,000
Land 500,000
Short-term prepaid expense 80,000
Required -
1. What is Dolms Company's current ratio?
2. What is Dolms Company's quick ratio?
3. What is Dolms Company's amount of working capital?