Reference no: EM132669091

The following events took place at the Dream Company for the current year.

Purchased P120, 000 in direct materials
Incurred labor costs as follows
Direct labor, P72, 000
Supervisor labor, P26, 000
Purchased manufacturing equipment for P94, 000
Other manufacturing overhead (excluding supervisor labor) was P88, 000

• Transferred 80% of the materials to the manufacturing assembly line
• Completed work on 70% of the goods in process. Costs are assigned equally across all work in process
• Sold 60% of the completed goods

There were no beginning balances in the inventory accounts. All costs incurred were debited to the appropriate account and credited to accounts payable.

Problem a: Provide the following:

1. Ending balance in direct materials inventory
2. The cost of goods sold