Financial Controllership Class Work No. 02: Calculating Cost of Goods Manufactured 2023 PDF

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).