Reference no: EM132859825

Selected cost data concerning the past fiscal year's operations of the Moscow Manufacturing Co. are presented below:

Inventories

                                       Beginning             Ending
Materials                            P75,000             P85,000 
Work in process                  80,000          30,000
Finished goods                  90,000                110,000

Materials used P326,000. Total manufacturing costs charged to production during the year (including direct materials, direct labor, and factory overhead applied at the rate of 60% of direct labor cost), P686,000. Cost of goods sold available for sale, P826,000. Selling and general expenses, P25,000.

Problem 1: What is the amount of direct materials purchase during the year?

a. 360,000
b. 316,000
c. 336,000
d. 411,000

Problem 2: What is the direct labor cost charged to production during the year?

a. 216,000
b. 135,000
c. 225,000
d. 360,000

Problem 3: What is the cost of goods manufactured during the year?

a. 736,000
b. 716,000
c. 636,000
d. 766,000

Problem 4: What is the cost of goods sold during the year?

a. 716,000
b. 691,000
c. 801,000
d. 736,000