Reference no: EM133145481

Question 1 - After its first three months of operations, the Atienza Company had the following data on its operations: Cost of goods manufactured amounted to P1,080,000.

Manufacturing costs were distributed as follows:

Direct materials used - 40%;

Direct labor - 35%;

Manufacturing overhead - 25%.

Work in process, March 31 were 20% of the total manufacturing costs.

Finished goods remaining in stock were 10% of the total cost of goods manufactured.

How much was the direct labor cost incurred during the period?

a. P525,000

b. P472,500

c. P420,000

d. P108,000

Question 2 - On April 23, 2022, Ong Company classified a non-current asset held for sale in accordance with PFRS 5. At that time, the asset's carrying amount was P34,000, its fair value was estimated at P48,000 and the costs to sell at P3,800. On July 18, 2022, the asset was sold for net proceeds of P40,000. The company accounts for non-current assets using the cost model. At what amount should the asset be reported in Ong Company's statement of financial position at June 30, 2022?

a. P48,000

b. P44,800

c. P34,000

d. P30,200