Financial Controllership Class Work No. 02: Calculating Cost of Goods Manufactured 2023 PDF
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2023
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Summary
This document details a classwork problem related to calculating the cost of goods manufactured for two products (X and Y) in 2023. Direct costs and overhead costs are provided for each product. The goal is to calculate the total cost of goods manufactured.
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Financial Controllership Class Work No.02: Calculating Cost of Goods Manufactured One of the vital roles of a Financial Controller is cost control. Let’s check how well- versed you are in calculating costs. Let’s take a walk down the memory lane by solving the problem below. Problem: Ther...
Financial Controllership Class Work No.02: Calculating Cost of Goods Manufactured One of the vital roles of a Financial Controller is cost control. Let’s check how well- versed you are in calculating costs. Let’s take a walk down the memory lane by solving the problem below. Problem: There are 2 products being manufactured by Capitolian company, namely: Product X and Product Y. Below are the details/information for the year 2023: For Product X- Beginning Inventory, January 2023: 5,000 units Ending Inventory, December 2023: 1,500 units Cost per unit: P5.00 Cost of materials purchased: P120,000 Cost of direct labor: P500,000 Freight In: P40,000 For Product Y- Beginning Inventory, January 2023: 10,000 units Ending Inventory, December 2023: 7,500 units Cost per unit: P2.00 Cost of materials: P80,000 Cost of direct labor: P300,000 Freight In: P25,000 Trade Discount received for the purchased aterials: P5,000 Apart from the above direct costs, the manufacturing company has also incurred the below overhead costs: Annual rent of manufacturing unit: P50,000 Annual electricity charges: P75,000 Salary of the manufacturing supervisor: P70,000 Requirements: Calculate and prepare the Cost of Goods Manufactured (consolidate the costs for both Products X & Y).