Reference no: EM132721405

Jacksonville Company uses a job order costing system. During May, the following costs appeared in the Work in process inventory account:

Beginning balance P30, 000
Direct materials used P90, 000
Direct labor incurred P75, 000
Applied overhead P52, 500
Cost of Goods manufactured P225, 000

Problem 1: Jacksonville Company applies overhead on the basis of direct labor cost. There was only one job left in work in process at the end of May which contained P6, 300 of overhead. What amount of direct material was included?

a. P7, 200
b. P9, 000
c. P11, 160
d. P11, 790

Problem 2: The allocation base that would most likely be the best for allocating the indirect costs of marketing function is

a. Number of shipments
b. Number of salesperson
c. Number of customer phone calls
d. Direct labor hours

Problem 3: The allocation base that would be most likely to be the best for allocating the indirect costs of the distribution function is

a. Number of shipments

b. Number of sales person

c. Direct labor hours