Beruflich Dokumente
Kultur Dokumente
CHAPTER 1
1. (b)
2. (a)
3. (d)
1
2
4. (c)
Total
Work in process inventory, ending 95,760
16,240
Cost of goods manufactured P 79,520
5. (d)
Materials inventory, Jan. 1 P 17,000
Purchases 240,000
Freight in 3,000
Materials available for use 260,000
Materials inventory, Dec. 31 19,000
Materials used 241,000
Direct labor 320,000
Factory overhead 188,000
Factory cost 749,000 (1)
Work in process inventory, Jan. 1 12,000
Total 761,000
Work in process inventory, Dec. 31 13,000
Cost of goods manufactured 748,000
Finished goods inventory, Jan. 1 62,000
Goods available for sale 810,000
Finished goods inventory, Dec. 31 46,000
Cost of goods sold P764,000 (2)
Cost of goods
Finished goodsmanufactured
inventory, Jan 1 107,000
14,000
Goods available for sale 121,000
Finished goods inventory, Dec. 31 20,400
Cost of goods sold (given) P100,600
2
3
7. (c)
Direct materials used P100,000
Direct labor 250,000
Factory overhead:
Factory supplies P 6,000
Indirect labor 50,000
Machine maintenance and repair 10,000
Factory rent, light and power 24,000
Depreciation 10,000
Payroll taxes 30,000 130,000
Factory cost 480,000
Work
Total in process inventory, Jan. 1 30,000
510,000
Work in process inventory, Dec. 31 40,000
Cost of goods manufactured 470,000 (1)
Finished goods inventory, Jan. 1 50,000
Goods available for sale 520,000
Finished goods inventory, Dec. 31 60,000
Cost of goods sold P460,000 (2)
8. (b)
Raw materials inventory, beginning P 44,000
Purchases 600,000
Materials available for use 644,000
Raw materials inventory, ending 60,000
Raw materials used 584,000
Direct labor 240,000
Factory overhead:
Indirect labor P120,000
Taxes, utilities and depreciation 100,000 220,000
Factory cost 1,044,000
Work in process inventory, beginning 80,000
Total 1,124,000
Work in process inventory, end 96,000
Cost of goods manufactured 1,028,000
Finished goods inventory, beginning 50,000
Goods available for sale 1,078,000
Finished goods inventory, end 36,000
Cost of goods sold P1,042,000
9. (b)
Direct materials used P 500,000
Direct labor 600,000
Factory overhead 700,000
Factory cost 1,800,000
Work in process inventory, beginning 200,000
Total 2,000,000
Work in process inventory, end 250,000
Cost of goods
Finished goodsmanufactured
inventory, beginning (squeeze) 1,750,000
610,000
Goods available for sale 2,360,000
Finished goods inventory, end 760,000
Cost of goods sold P1,600,000
3
4
10. (d)
Direct materials, Dec. 31, 19x7 P 16,000
Purchases 170,000
Available for use 186,000
Direct materials, Dec. 31, 19x8 (squeeze) 65,000 (1)
Direct materials used (P301,000- P180,000) 121,000
Direct labor 180,000
Factory overhead [(P180,000 / 60%) x 40% ] 120,000
Factory cost 421,000
Work
Total in process, Dec 31, 19x7 34,000
455,000
Work in process, Dec. 31, 19x8 (squeeze) 25,000 (2)
Cost of goods manufactured 430,000
Finished goods, Dec. 31, 19x7 30,000
Goods available for sale 460,000
Finished goods, Dec. 31, 19x8 (squeeze) 60,000 (3)
Cost of goods sold (P500,000 x 80%) P400,000
4
5
Indirectcost
Manufacturing materials 21,390 65,280
194,080
Work in process inventory, Jan. 1 5,740
Total 199,820
Work in process inventory, Dec. 31 7,820
Cost of goods manufactured (16,000 units) 192,000
Finished goods inventory, Jan. 1 (500 units x P12*) 6,000
Goods available for sale 198,000
Finished goods inventory, Dec. 31 (1,500 units x P12) 18,000
Cost of goods sold (15,000 units x P12) P180,000
13. (d)
Materials inventory, beginning P 8,000
Purchases 36,000
Materials available for use 44,000
Materials inventory, ending 8,500
Materials used 35,500
Direct labor (P15,000 ÷ 2/3) 22,500
Factory overhead 15,000
Factory cost 73,000
Work in process inventory, beginning 8,000
Total 81,000
Work in process inventory, ending 15,000
Cost of goods manufactured 66,000
Finished goods inventory, beginning 7,000
Goods available for sale 73,000
Finished goods inventory, ending 10,200
Cost of goods sold P62,800 (1)
Sales P 72,000
Cost of goods sold 62,800
Gross profit
Operating expenses ( P72,000 x 6%) 9,200
4,320
Operating income 4,880
Other expenses (P72,000 x 5%) 3,600
Net income before income tax P 1,280 (2)
5
6
14. (a)
Sales P182,000
Cost of goods sold 111,000
Gross profit 71,000
Operating expenses:
Marketing expenses P14,000
General
Operating and administrative expenses
income 22,900 P 36,900
34,100 (2)
15. (d)
Factory overhead:
Indirect labor P 22,000
Factory heat, light and power 11,220
Factory rent 18,500
Factory insurance 2,000
Production supervisor’s salary 5,000
Indirect materials used (P5,600+P16,500- P5,180) 16,920
Overtime pay [250 hours x (P22 x .5)] 2,750
Total P78,390 (1)
6
7
16. (d)
Total
Work in process inventory, ending 766,000
30,000
Cost of goods manufactured P 736,000 (3)
17. (c)
18. (b)
Direct materials:
Materials inventory, Dec 1 P24,000
Purchases 56,000
Materials inventory, Dec 31 ( 20,000 ) P 60,000
Direct labor 40,000
Prime cost P100,000 (1)
7
8
19. (d)
20. (a)
Purchases
Available for use 90,000
120,000
Direct materials, Dec 19x9 20,000
Direct materials used (given) 100,000
Direct labor (P72,000 ÷ 200%) 36,000
Applied factory overhead 72,000
Manufacturing cost 208,000
Work in process inventory, Dec. 31, 2008 (Squeeze) 3,000 (2)
Total 211,000
Work in process inventory, Dec. 31, 19x9 35,000
Cost of goods manufactured 176,000
Finished goods inventory, Dec. 31, 19x8 50,000
Goods available for sale 226,000
Finished goods inventory, Dec. 31, 19x9 46,000
Cost of goods sold (given) P180,000
21. (a)
8
9
22. (c)
23. (b)
Sales:
Product X (9,000 x P30) P270,000
Product Y (8,800 x P50) 440,000 P710,000
Cost of goods sold (Sch. 1) 512,600
Gross profit 197,400
Operating expenses 100,900
Operating income P 96,500 (2)
Sch. 1:
Manufacturing cost (P210,000 + P296,000) P506,000
Beginning inventories (P21,000 + P33,300) 54,300
Total 560,300
Ending inventories (P42,000 + P3,700) 45,700
Cost of goods sold at normal 514,600
Over-applied factory overhead ( 2,000 )
Cost of goods sold at actual P512,600
9
10
24. (d)
Conversion
Factory costcost 157,200
219,200
Work in process inventory, beginning 15,000
Total 234,200
Work in process inventory, ending 17,600
Cost of goods manufactured 216,600
Finished goods inventory, beginning 22,000
Goods available for sale 238,600
Finished goods inventory, ending 17,000
Cost of goods sold P221,600 (2)
25. (c)
Unit cost of equipment manufactured (P4,937, 500 ÷ 12,500 units) P395.00 (1)
Sales P 6,634,000
Cost of goods sold 4,901,500
Gross profit P 1,732,500
Gross profit
Operating expenses P 1,732,500
977,000
Net income P 755,500
10
11
26 (d)
27. (d)
28. (d)
29. (d)
11
12
30. (c)
31. (a)
P40,000/200%
** P30,000 x 50%
32. (b)
33. (b)
X + .80X = P25,200
180X = P25,200
X = P14,000 Direct labor
.80X = P11,200 Applied factory overhead.
12
13
34. (c)
Total
WIP, Dec. 31: DM (2,000 x P2.40) P4,800 194,400
DL (2,000 x P.80) 1,600
Applied FO (32 hrs. x P100) 3,200 9,600
(2) Cost of goods manufactured P184,800
Finished goods, Dec. 1 12,000
Goods available for sale 196,800
Finished goods, Dec. 31:
DM P5,000
DL 3,000
Applied FO (P100 x 60 hrs) 6,000 14,000
(3) Cost of goods sold P182,800
35. (d)
36. (b)
13
14
37. (c)
38. (a)
(1) Accounts
Payment ofpayable, March
accounts 31 (for materials)
payable P 70,000
20,000
Accounts payable, March 1 (12,000)
Materials purchased P 78,000
(2) This can be computed by working backward from cost of goods sold as follows:
39. (d)
40. (b)
14
15
41. (c)
Direct materials
Direct labor P2,800
1,800
Applied factory overhead (150% x P1,800) 2,700 7,300
Cost of goods manufactured P80,600
Finished goods inventory, May 31 (job 776) 4,000
Cost of goods sold at normal P76,600
42. (d)
44. (b)
45. (a)
Direct materials used P45,000 (cr)
Direct labor 11,500 (cr)
Applied factory overhead :
Job X (P5,000 x 200%*) P10,000
Job
Job Y (P4,000 xx 200%*)
Z (P2,500 200%*) 8,000
5,000 23,000 (cr)
Total manufacturing cost charged to Work in Process P79,500 (dr)
* P300,000 / P150,000 = 200%
15
16
46. (d)
Total
Work in process, June 30 285,120
48,420
Cost of goods manufactured P263,700 (2)
47. (a)
48. (a)
49. (a)
16
17
50. (a)
52. (b)
Direct
Factorylabor hourshead
overhead (P360,000/P15)
per hour 24,000
x P20hrs.
Applied manufacturing overhead P480,000
54. (a)
55. (b)
56. (b)
57. (a)
Sales P1,090,000
Cost of goods sold at actual (P900,000 + P60,000) 960,000
17
18
58. (c)
Sales P1,09`0,000
Cost of goods sold 943,200
Gross profit 146,800
Manufacturing overhead 140,000
Operating income P 6,800
Finished goodssold
Cost of goods 50,000
900,000 4%
72% 2,400
43,200
Total P1,250,000 100% P60,000
59. (c)
60. (d)
62. (a)
63. (d)
18
19
64. (c)
65. (a)
67. (d)
Applied factory overhead P 44,000
Actual factory overhead 48,000
Under-applied overhead P 4,000
68. (c)
19
20
PROBLEMS
Problem 1-1
a. Materials 13,500
Accounts payable 13,500
20
21
Problem 1-2
a. Materials 100,000
Accounts payable 100,000
c. Payroll 88,000
Withholding tax payable (10%) 8,800
SSS Premium
Pag-ibig Payable
premium (5%)
Payable 4,400
880
Medicare premium payable 1,320
Accrued payroll (net) 72,600
21
22
Problem 1-3
a. Materials 64,000
Accounts payable 64,000
c. Payroll 100,000
Withholding tax payable (14%) 14,000
SSS Premium Payable (5%) 5,000
Medicare premium payable (. 5%) 500
Pag-ibig premium payable (. 5%) 500
Accrued payroll 80,000
22
23
f. Work inFactory
processoverhead control 44,000 44,000
j. Cash 145,000
Accounts receivable 145,000
Problem 1-4
1. a. Materials 200,000
Accounts payable 200,000
d. Factory SSS
overhead control payable
contribution 8,800 5,500
Phil. Health contribution payable 1,300
Pag-ibig contribution payable 2,000
23
24
Problem 1-5
(1) Work in process 135,000
Materials 135,000
24
25
Problem 1-6
b. Payroll 220,000
Payroll payable 220,000
25
26
g. Cash 494,000
Sales discount 26,000
Accounts receivable 520,000
2. Joselyn Company
Statement of Cost of Goods Sold
Month Ended January 31, 2010
Problem 1-7
b. Work inoverhead
Factory process control 18,600
2,400
Materials 21,000
26
27
c. Materials 600
Factory overhead control 200
Work in process (Job 622) 400
e. Payroll 38,000
Payroll payable 38,000
k. Cash 40,000
Accounts receivable 40,000
27
28
Problem 1-8
(1) Nancy Corporation
Cost of goods sold statement
Month Ended September 30, 2010
Work
Cost ofingoods
process inventory, Sept.30
manufactured 4,440
75,480
Finished goods inventory, Sept.1 9,800
Goods available for sale 85,280
Finished goods inventory, Sept. 30 9,250
Cost of goods sold P 76,030
Net
P1,300)
sales (P144,900 – P143,600
Cost of goods sold 76,030
Gross profit 67,570
Operating expenses:
Marketing expenses P 25,050
Depreciation (P30 + P16 + P20 + 24) 90
General administrative expenses 19,700 44,840
Net income P 22,730
28
29
Problem 1-9
Supporting computations:
F inished goods inventories:
COGM + FG, beg – FG, end = COGS
Let X = Finished goods inventory beginning
4X = Finished goods inventory ending
Therefore:
P375,000 + X – 4X = P300,000
-3X = -P375,000
X = P25,000 finished goods, beginning
4X = P100,000 finished goods ending
29
30
30
31
Cash 208,000
Problem 1-11
31
32
(c ) Payroll 49,000
Accrued payroll 49,000
Problem 1-12
Computation of Costs:
1. Direct materials used P 710,000
Direct labor 1,300,000
Applied factory overhead (P1,300,000 x 160%) 2,080,000
Manufacturing cost P4,090,000
2. Supplies P 100,000
Indirect labor 900,000
Depreciation of building and factory equip. 400,000
Miscellaneous 550,000
Total actual factory overhead P1,950,000
32
33
Problem 1-13
(1) J MG Company
BalanceSheet
December 31, 2009
Assets
Cash (Schedule 1) P 38,000
Accounts receivable 20,000
Finished goods inventory [P12,000
(1/3–x P12,000)] 8,000
Work in process
Materials inventory
inventory [P4,000
[P8,000
(50% (50%
– x P4,000)]
–x P8,000)] 2,000
4,000
Prepaid expenses 1,000
Property, plant, and equipmentP8,000)
(P60,000– 52,000
Total P125,000
Supporting Computations:
Schedule 1
Direct labor
Current cost (accrued
liabilities, Dec. 31,payroll)
2009 (required balance) (18,000
35,000 )
Payment of current liabilities P 18,000
33
34
(2) J MG Company
I ncomeStatement
Year Ended December 31, 2009
Sales P120,000
Cost of goods sold at actual (Sch. 2) 80,000
Gross profit 40,000
Operating expenses:
Marketing expenses P12,000
Administrative expenses 18,000 30,000
Net income P 10,000
34
35
Problem 1-14
1. Cost of Jobs:
Job 234 Job 567
Direct materials used P 32,500 P 59,000
Direct labor 35,000 30,000
Applied factory overhead 35,000 30,000
Total factory cost P102,500 P119,000
Materials
Materials returned to storeroom
account balance P 2,500
8,500
Problem 1-15
1. J ournal entri es
b. Materials 720,000
Accounts payable 720,000
35
36
Job 40 Job 41
Work in process, June 1 P 20,000 P 60,000
Current costs:
Direct materials 100,000 220,000
Direct labor 200,000 200,000
Applied FO 200,000 200,000
Total costs P520,000 P680,000
Or:
Work in process
Balance, June 1 P 80,000 P1,200,000 (i)
(c) 560,000
(d) 620,000
(h) 620,000
1,880,000 1,200,000
Balance, June 30 P680,000
36
37
Problem 1-16
Jenna Company
Statement of Cost of Goods Sold
Year Ended December 31, 2010
Factory overhead:
Factory maintenance P38,400
Factory power and heat 19,400
Insurance 4,800
Depreciation 17,500
Factory superintendence 100,000
Indirect labor 20,000
Factory supplies 22,400 222,500
Manufacturing cost 774,300
Work in process, Jan. 1 84,000
Cost of goods placed in process 858,300
Work in process, Dec. 31 30,000
Cost of goods manufactured 828,300
Finished goods inventory, Jan. 1 37,500
Goods available for sale 865,800
Finished goods inventory, Dec.31 40,000
Cost of goods sold P825,800
Problem 1-17
Jenny I ncorporated
Statement of Cost of Goods Manufactured and Sold
Month E nded May 31, 2010
Factory
Work incost
process inventory, April 30, 19x8 1,110,000
150,000
Cost of goods placed in process 1,260,000
Work in process inventory, May 31, 19x8 130,000
Cost of goods manufactured P1,130,000
37
38
Problem 1 – 18
1. Journal Entries:
Cash 74,500
38
39
Problem1-18, continued:
Sales P412,500
Cost of goods sold:
Finished goods inventory, May 1 P 28,800
Cost of goods manufactured 394,400
Goods available for sale 423,200
Finished goods inventory, May 31, (Job 812) 115,000 308,200
Gross profit 104,300
Operating expenses 74,500
Net profit P 29,800
39
40
Problem 1-19
Job
Job 202
203 P4,700
3,280
Job 204 4,160 P12,140
Put into process during April:
Direct materials P 9,705
Direct labor 9,500
Applied factory overhead (P16/hr) 7,600 26,805
Total cost of goods placed in process P38,945
Finished goods:
Job 202 P9,550
Job 204 6,930
Job 205 6,280
Job 207 5,870 28,630
Work in process, April 30{
Job 203 P6,535
Job 206 3,780 P10,315
Supporting Computations:
Job 202 Job 203 Job 204 Job 205 Job 206 Job 207
Work in process, April 1 P4,700 P3,280 P4,160 P - P - P -
Current costs:
Direct materials 1,250 555 970 2,500 1,980 2,450
Direct labor 2,000 1,500 1,000 2,100 1,000 1,900
Applied FO (P16/DLH) 1,600 1,200 800 1,680 800 1,520
Total cost P9,550 P6,535 P6,930 P6,280 P3,780 P5,870
40
41
Problem 1-20
(1)
Job 204 Job 205 Job 206 Job 207
Work in process, March 1 P50,460 P118,060 P124,101 P -
Cost added this month:
Direct materials 9,480 11,320 10,490 22,440
Direct labor 26,844 22,750 28,920 20,370
Applied factory overhead 7,717.65 7,475 8,314.50 6,693
Total cost P94,501.65 P159,605 P171,825.50 P 49,503
41
42
Problem 1-21
Tanny Company
Statement of Cost of Goods Manufactured and Sold
Year Ended December 31, 2010
Problem1-21, continued:
42
43
Cost
Cost ratio
of goods sold at actual 72%
P360,000
43
44
Problem 1-22
2. Sales P1,400,000
Cost of goods sold 772,000
Gross profit 628,000
Selling and administrative expenses 140,000
44
45
Problem 1-24
Computations:
1. P50,000
2. P200,000
3. P100,000
4. P346,000
5. P350,000
Accrued payroll,
Payment July 31
of payroll ( 9,000 )
P259,000
45
46
46