Reference no: EM132924110
Problems -
Prob 1 - On January 5, 2020, Dakazi Company won a court case award for P3,000,000 which was doubled to P6,000,000 to include corrective damages. The defendant, Paprazzi who is financially capable, has appealed only the P3,000,000 corrective damages. Dakazi was awarded P2,500,000 in an unrelated case it filed, which is being appealed by Lazzi Corp. Dakazi's lawyer couldn't give probable estimates to the outcome of the appeals. In its 2020 P/L, Dakazi Company should report what amount of gain?
Prob 2 - Candyco's annual budget included $7500 in MOH and it expected to have 5000 direct labor hours (its cost driver). Actual results were as follows:
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1/1
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12/31
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Raw Materials
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$5200
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$6900
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WIP
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$7050
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$9100
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FG
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$4250
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$2100
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Candyco purchased $82,340 in ingredients and paid $132,750 in DL costs. Its factory workers worked 5100 hours during the year. Sales were $911,567 and SG&A costs were $18,562. Create an income statement for Candyco.
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: Its factory workers worked 5100 hours during the year. Sales were $911,567 and SG&A costs were $18,562. Create an income statement for Candyco
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