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Question - Nirvana Co. employs a normal (nonstandard) absorption cost system. The information below is from the financial records of the company for the year.
Total manufacturing costs were P2,500,000.
Costs of goods of manufactured was P2,425,000.
Applied factory overhead was 30 percent of total manufacturing costs.
Factory overhead was applied to production at a rate of 80% of direct labor cost.
Work-in-process inventory at January 1 was 75% of work-in-process inventory at December 31.
Required - What are the amounts/value of the following cost elements and inventory?
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