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Problem - Fisher Company uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to jobs. The following information about Fisher Company's Work in Process inventory account has been provided for the month of May:
May 1 balance P26,000
Debits during May: Direct Materials P40,000
Direct Labor P50,000
Manufacturing Overhead P37,500
During the month, Fisher Company's Work in Process inventory account was credited for P120,500, which represented the Cost of Goods Manufactured for the month. Only one job remained in process on May 31; this job had been charged with P9,600 of applied overhead cost. Find the amount of direct materials cost in the unfinished job?
Analyze the different inventory valuation methods discussed . Based on your analysis, recommend the most accurate valuation method that reflect current economic
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That's what it's worth. Or, at a minimum, at $106,000." Respond to this statement with specific reference to accounting principles applicable in this situation.
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