Reference no: EM132711563
The following information was taken from the records of Blue Company for the current month:
Production in units, 25,000
Raw materials used, P=500,000 of which P=50,000 is indirect
Factory labor hours utilized, 2,000 hours. This includes 200 hours worked as overtime. The regular rate is P=50 per hour and the overtime premium is 30%.
Factory overhead applied to the job is P=2 per unit plus P=80,000 per month
Selling expenses, P=1 per unit plus P=65,000 per month
Administrative expenses, P=2 per unit plus P=80,000 per month
Sales for the current month, 22,000 units at 40% mark-up on costs.
Problem 1: Compute for the cost of goods sold for the period.
Problem 2: Compute for the net income or loss from operation.
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