Reference no: EM133230948
PROBLEM 1
The company has the following financial information:
Manufacturing overhead- P30,101,800
Increase in raw materials- P2,430,000
Decrease in work in process- P590,000
Increase in finished goods- P1,320,400
Manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing.
How much is the cost of goods sold?
A• P181,200,800
B• P179,880,400
C• P180,020,800
D• P177,590,800
PROBLEM 2
Beta Corp. has a branch in Davao City established on May 31, 2022. During 2022, the home office shipped merchandise costing P110,000 to the branch, billed at 110% of cost. At the end of the year, the branch reported sales of P200,000, operating expenses of P80,000, and a net income from its operation of P10,000.
Determine the true net income of the branch.