The Iskolarians Company manufactures widgets. During the fiscal year just ended, the company incurred prime costs of P1, 500, 000 and conversion costs of P1, 800, 000. Overhead is applied at the rate of 200% of direct labor cost. How much of the above costs represent material cost?

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

The Iskolarian’s Company manufactures widgets. During the fiscal year just ended, the company incurred prime costs of P1, 500, 000 and conversion costs of P1, 800, 000. Overhead is applied at the rate of 200% of direct labor cost. How much of the above costs represent material cost?

A	1, 500, 000
B	300, 000
C	900, 000
D	600, 000

Explanation:

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