Reference no: EM133152206
Question - BTS Company provided the following account balances for the year ended December 31 (all materials are used in production as direct materials):
Selling expense P140,000
Purchases of raw materials P290,000
Direct labor ?
Administrative expenses P100,000
Manufacturing overhead applied to work in process P285,000
Total actual manufacturing overhead P270,000
Inventory balances at the beginning and end of the year were as follows:
Raw materials
Beginning of Year - P40,000
End of Year - P10,000
Work in process
Beginning of Year - ?
End of Year - P35,000
Finished goods
Beginning of Year - P50,000
End of Year - ?
The total manufacturing cost for the year was P683,000; the cost of goods available for sale totaled P740,000; the unadjusted cost of goods sold totaled P660,000; and the net operating income was P30,000. The company's overapplied or underapplied overhead is closed entirely to Cost of Goods sold.
Required -
1. Calculate the direct labor cost.
2. Calculate the Work in Process beginning.