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Integrity Company had the following account balances and results from operations for the month of July: direct materials consumed, P10,400; direct labor, P8,000; factory overhead, P8,800; July 1, work in process inventory, P2,400; July 31, work in process inventory, P1,800; finished goods inventory, July 1, P1,200; finished goods inventory, July 31, P1,000
Integrity Company had the following account balances and results from operations for the month of July: direct materials consumed, P10,400; direct labor, P8,000; factory overhead, P8,800; July 1, work in process inventory, P2,400; July 31, work in process inventory, P1,800; finished goods inventory, July 1, P1,200; finished goods inventory, July 31, P1,000. The cost of goods sold was: x (1 Point)
C) P27,600 U P27,800 C) P27,200 C) none of the choices 0 P28,000
Expert Solution
Computation of Cost of Goods Sold:
Cost of Goods Sold = Cost of Goods Manufactured + Beginning Finished Goods Inventory - Ending Finished Goods Inventory
= (Direct Material Consumed + Direct Labor + Factory Overhead + Beginning Work in Process Inventory - Ending Work in Process Inventory) + Beginning Finished Goods Inventory - Ending Finished Goods Inventory
= (10,400+8,000+8,800+2,400-1,800)+1,200-1,000
= 27,800+1,200-1,000
Cost of Goods Sold = 28,000
So, the correct option is 5th "P28,000".
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