Reference no: EM132633607

FLOW OF COSTS

Jana Company had the following inventories on September 1:

Materials 90,000 Work in process- labor 54,000

Finished goods 75,000 Work in process - overhead 40,500

Work in process - materials 45,000

During September, the cost of materials purchased was P300,000, direct labor cost incurred was P270,000 and factory overhead applicable to production was 75% of the direct labor cost.

The September 30 inventories were as follows:

Materials 45,000

Work in process- labor 30,000

Finished goods 70,500

Work in process - overhead 22,500

Work in process - materials 18,000

REQUIRED:

Problem 1: T-accounts showing the flow of the cost of goods manufactured and sold, using three accounts for work in process. Use in t-account:

MATERIAL,

WORK-IN-PROCESS-LABOR

WORK-IN-PROCESS-MATERIALS

WORK-IN-PROCESS-OVERHEAD

FINISHED GOODS

COST OF GOODS SOLD