Reference no: EM132792278

Cost of Goods Manufactured

In addition to the year-end statement of financial position and income statement, the management of Esterlina Gevera Company required the controller to prepare the statement of cost of goods manufactured. During 2019, P361,920 of raw materials were purchased.

Operating cost data and inventory account balances for 2019 follow:

Direct Labor (10,430 hours at P9.50 per hour) P 99,085

Plant Supervision 42,500

Indirect Labor (20,280 hours at P6.25 per hour) 126,750

Factory Insurance 8,100

Factory Utilities 29,220

Depreciation-Factory Building 46,200

Depreciation-Factory Equipment 62,800

Manufacturing Supplies 9,460

Repairs and Maintenance 14,980

Selling and Administrative Expenses 76,480

Raw Materials Inventory, Jan 1, 2019 26,490

Work in Process Inventory, Jan. 1, 2019 101,640

Finished Goods Inventory, Jan. 1, 2019 148,290

Raw Materials Inventory, Dec. 31, 2019 24,910

Work in Process Inventory, Dec. 31, 2019 100,400

Finished Goods Inventory, Dec. 31, 2019 141,100

Required:

Problem 1. Compute the cost of direct materials used during the year.

Problem 2. Compute the total manufacturing costs for the year.

Problem 3. Compute the cost of goods manufactured during the year.