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Question - A Company has budgeted sales at P100,000 and expect a profit of 20% of the sales. Expenses are estimated as follows: selling = 10% of sales; administrative = 10% of sales. Labor is expected to be 50% of the total manufacturing costs. Factory overhead is to be applied at 75% of direct labor costs. Inventories are to be as follows:
January 1
December 31
Materials
P12,000
P4,000
Work-in-process
3,000
8,000
Finished goods
5,000
10,000
Required -
a. Determine the Cost of goods sold.
b. Determine the Total manufacturing costs.
c. Determine the Factory overhead.
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