Question

The following were taken from the books of Marvin Company. The company uses the FIFO method for costing inventories. January 1 March 31 Raw materials Work in process Finished goods P 268,000 0 43,000 (100 units) P 167,000 0 ? (200 units) Raw materials purchased Direct labor Factory overhead Sales P 1,946,700 2,125,800 764,000 12,400 units @ P535

8.The number of units manufactured is a. 11,900 b. 12,000 c. 12,500 d. 15,200

9. Refer to No. 8. The cost of goods manufactured per unit is a. P 300 b. P 350 c. P 395 d. P 420

10.Refer to No. 8. The cost of goods sold is a. P4,091,500 b. P4,109,500 c. P4,901,500 d. P4,910,500

10. Refer to No. 8. The cost of goods sold is a. P4,091,500 b. P4,109,500 c. P4,901,500 d. P4,910,500

Answer 1

8. Number of units manufactured = 12400+200-100 = 12500
Answer is c. 12,500

9.
Cost of Goods Manufactured per unit = $4937500 / 12500 = P 395
Answer is c. P 395

Schedule of Cost of Goods manufactured
Direct Materials
Raw Material, Beginning Inventory	268,000
Add: Purchases	1,946,700
Total Raw Material Available	2,214,700
Deduct : Raw Material in inventory, ending	167,000
Raw Material used in production		2,047,700
Direct Labor		2,125,800
Manufacturing Overhead Applied		764,000
Total Manufacturing Costs		4,937,500
Add: Beginning Work in Process Inventory		-
		4,937,500
Deduct: Ending Work in Process Inventory		-
Cost of Goods Manufactured		4,937,500

10.
Answer is c. P4,901,500

Schedule of Cost of Goods Sold
Finished Goods Inventory, Beginning		43,000
Add: Cost of Goods Manufactured		4,937,500
Cost of Goods Available for sale		4,980,500
Deduct : Finished Goods Inventory, Ending		79,000
Unadjusted Cost of goods sold		4,901,500