Reference no: EM132561106
LeeGon Inc. is engage in the business of manufacturing basketballs. The company employs actual costing system the company uses a single account for the direct and indirect materials. The company opted to use actual costing.
The company provided the following data for the year ended December 31, 2022:
Gross sales 9,500,000
Sales returns 500,000
Gross purchases 1,000,000
Purchase returns allowance and discount 200,000
Freight in 400,000
Total costs of factory labor 1,000,000
Depreciation of factory assets 300,000
Expired insurance on factory assets 100,000
Utilities expense on factory 500,000
Total administrative expenses 2,000,000
Total marketing expenses 3,000,000
Inventories are as follows:
January 1 December 31
Raw Materials 100,000 300,000
Work in process ? 200,000
Finished goods 500,000 600,000
The following additional data are provided:
1. The net profit ratio of the company before income tax for the year ended December 31, 2022 was 10% of net sales.
2. The direct labor cost for the year was four times the cost of the indirect labor.
3. The cost of indirect materials used was P100,000.
Question 1: What is the total primes cost?
a. 1,700,000
b. 2,000,000
c. 1,800,000
d. 1,900,000
Question 2: What is the total conversion cost?
a. 2,000,000
b. 1,900,000
c. 2,100,000
d. 2,200,000
Question 3: What is the cost of goods manufactured?
a. 3,200,000
b. 3,100,000
c. 3,300,000
d. 3,000,000
Question 4: What are the cost of goods sold and the cost of work in process on January 1. 2022, respectively?
a. 3,100,000 and 500,000
b. 3,200,000 and 300,000
c. 3,000,000 and 400,000
d. 2,900,000 and 600,000