Reference no: EM132909473

Questions -

Q1. The Cebu Company manufactures a product using the job order cost system. You obtained from the company's books, the following information for the year ended May 31, 2019:

1) The work in process on May 1 was 20% less than the work in process on May 31.

2) The total manufacturing costs added during May, 2019 was P900,000 based on actual direct materials and direct labor but with factory overhead applied on actual direct labor pesos.

3) The factory overhead applied to process was 72% of the direct labor pesos and was equal to 25% of the total manufacturing costs.

4) The cost of goods manufactured was P850,000.

Direct materials used and the work in process inventory, May 31;

a) P362,500-P250,000

b) P312,500-P200,000

c) P225,500-P225,000

d) P212,500-P275,000

Q2. Davao Company presents the following data that pertains to Job No. 345 which is being carried to meet customer's order.

Cutting Dept. Assembly Dept.

Direct materials used P5,000 P3,000

Direct labor hours employed 400 200

Direct labor rate per hour P4 P5

Overhead rate per direct labor hour P4 P4

Profit mark-up (25% of selling price)

Administrative & Other overhead (20% of full production cost)

What is the selling price to the customer for Job No. 345?

a) P119,810

b) P17,333

c) P20,800

d) P16,250