Question

NESTLE Inc., is employing a sophisticated just-in-time manufacturing system. The company uses backflush costing for recording its production. The following transactions occurred for the year ended December 31, 2016: a. Purchased P170,000 of raw materials on account. b. All materials purchased were requisitioned for production. c. Incurred direct labor costs of P80,000. d. Actual factory overhead costs amounted to P122,000. e. Applied conversion costs totaled P202,000 including direct labor cost of P80,000. f. All telephones were completed and sold. Req: What is the cost of goods sold for the year ended December 31, 2016?

Answer 1

Answer:

The company uses backflush costing for recording its ... occurred for the year ended December 31, 2016: a. Purchased P170,000 of raw materials on account