question archive The Gordon Cylinder Company manufactures aluminum compressed-gas cylinders, using aluminum ingot as the only direct material, inventories at Sept
The Gordon Cylinder Company manufactures aluminum compressed-gas cylinders, using aluminum ingot as the only direct material, inventories at Sept
Subject:BusinessPrice: Bought3
The Gordon Cylinder Company manufactures aluminum compressed-gas cylinders, using aluminum ingot as the only direct material, inventories at Sept. 1 were as follows: Aluminum Ingot, P118,600.00; Work in Progress P16,100.00; Finished Goods, P31,000.00. Inventories at Sept. 30 were: Aluminum Ingot, P114,100.00; Work in Progress, P14,800.00; Finished Goods, P28,4400.00. Purchases of aluminum ingot for September amounted to P7,700.00, Direct labor hours for September were 1,100 at P5.00 per hour. Actual manufacturing overhead costs incurred in September were as follows, Non-aluminum Materials P1,500.00; Indirect labor, P1,600.00; Fringe Benefits, P1,200.00; Depreciation P800.00; Utilities. P700.00; Insurance, P300.00; Property Taxes, P500.00, Net Sales of P56,900.00 were realized in September General, selling, and administrative expenses were P3,500. Income is taxed at a rate of 50 percent.
