Kainkamuna Co. is engaged in the business of manufacturing basket balls. The company employs actual costing system. The company uses a single account for direct and indirect materials. The company provided the following data for the year ended December 31,2020. * Gross sales Sales returns Gross purchases Purchase returns, allowance and discount Freight in Total costs of factory labor Depreciation of factory assets Expired insurance on factory assets Utilities expense on factory Total administrative expenses Total marketing expenses 9,500,000 500,000 1,000,000 200,000 400,000 1,000,000 300,000 100,000 500,000 2,000,000 3,000,000 Inventories are as follows: January 1 100,000 December 31 Raw materials Work in process Finished goods 300,000 200,000 600,000 500,000 The following additional data are provided: 1. The net profit ratio of the company before income tac for the year ended December 31,2020 was 10% of net sales. 2. The direct labor cost for the year was four times the cost of indirect labor. 3. The cost of indirect materials used was Php 100,000.00 9. What is the total prime cost?
Kainkamuna Co. is engaged in the business of manufacturing basket balls. The company employs actual costing system. The company uses a single account for direct and indirect materials. The company provided the following data for the year ended December 31,2020. * Gross sales Sales returns Gross purchases Purchase returns, allowance and discount Freight in Total costs of factory labor Depreciation of factory assets Expired insurance on factory assets Utilities expense on factory Total administrative expenses Total marketing expenses 9,500,000 500,000 1,000,000 200,000 400,000 1,000,000 300,000 100,000 500,000 2,000,000 3,000,000 Inventories are as follows: January 1 100,000 December 31 Raw materials Work in process Finished goods 300,000 200,000 600,000 500,000 The following additional data are provided: 1. The net profit ratio of the company before income tac for the year ended December 31,2020 was 10% of net sales. 2. The direct labor cost for the year was four times the cost of indirect labor. 3. The cost of indirect materials used was Php 100,000.00 9. What is the total prime cost?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 5PB: Statement of cost of goods manufactured and income statement for a manufacturing company The...
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