ABD Company manufactures wooden rocking chairs. ABD identified the following three material costs in its production process for July: PhP5,000,000 for springs for the rocking mechanism; two springs at a cost of PhP500 each are used in each chair; PhP85,000 for glue used as needed from one-gallon containers; and PhP25,000 for stain used to touch up spots on the chairs. How much is the total cost that should have been assigned to indirect materials for July? Show the solution.

ABD Company manufactures wooden rocking chairs. ABD identified the following three material costs in its production process for July: PhP5,000,000 for springs for the rocking mechanism; two springs at a cost of PhP500 each are used in each chair; PhP85,000 for glue used as needed from one-gallon containers; and PhP25,000 for stain used to touch up spots on the chairs. How much is the total cost that should have been assigned to indirect materials for July? Show the solution.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PB: Box Springs. Inc., makes two sizes of box springs: queen and king. The direct material for the queen...

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