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Cost Accounting Chapter 6 PDF
Cost Accounting Chapter 6 PDF
= 240 units
2, AVERAGE
Received Issued Balance
1 1,600 x 6.00 9,600
5 400 x 7.00 2,800 2,000 x 6.20 12.400
9 400 x 8.00 3,200 2,400 x 6.50 15,600
16 800 x 6.50 5,200 1,600 x 6.50 10,400
24 600 x 9.00 5,400 2,200 x 7.18 15,800
27 1,000 x 7.18 7,180 1,200 x 7.18 8,620
A. PERPETUAL
1. FIFO
Received Issued Balance
1 300 x 17.50 5,250
8 200 x 1750 3,500 100 x 17.50 1,750
10 900 x 18.00 16,200 100 x 17.50 1,750
900 x 18.00 16,200
18 100 x 17.50 1,750 400 x 18.00 7,200
500 x 18.00 9,000
20 1,200 x 18,25 21,900 400 x 18.00 7,200
1,200 x 18.25 21,900
25 400 x 18.00 7,200
600 x 18.25 10,950 600 x 18.25 10,950
2. AVERAGE
Received Issued Balance
1 300 x 17.50 5,250
8 200 x 17.50 3,500 100 x 17.50 1,750
10 900 x 18.00 16,200 1,000 x 17.95 17,950
18 600 x 17.95 10,770 400 x 17.95 7,180
20 1,200 x 18.25 21,900 1,600 x 18.175 29,080
25 1000 x 18.175 18,175 600 x 18.175 10,906
Problem 9 – Bedrock Company
a. Loss due to spoiled work is spread over all jobs
1. Work in process 1,320,000
Materials 360,000
Payroll 480,000
FO Applied 480,000
b. FO Control 24,000
Materials 4,000
Payroll 8,000
b. FO Control 1,250
Materials 500
Payroll 300
FO Applied (300 x 150%) 450
Problem 15 -
Material Yearly Usage Unit cost Percent Total cost Percent
1x4 5,250 P 2.00 13.1 (5,250/40,100) P 10,500 21,2
1x5 6,000 1.75 15.0 (6,000/40,100) 10,500 21.2
1x8 5,500 1.85 13.7 10,175 20.6
63.0% - A
Multiple choice
1, a 6. b 11. a 16. d 21. d 26. a
2, b 7. b 12. a 17. b 22. c 27. a
3, d 8. a 13. c 18. b 23. b 28. b
4, a 9. c 14. c 19. a 24. c 29. d
5, c 10. b 15. d 20. b 25. d 30. a
30.
Safety Expected Stockout Carrying Total
Stock Cost Cost Cost
10 50% x 10 x P175 = 875 3 x 10 = 30 905
20 40% x 10 x 175 = 700 3 x 20 = 60 760
30 30% x 10 x 175 = 525 3 x 30 = 90 615
40 20% x 10 x 175 = 350 3 x 40 = 120 475
50 10% x 10 x 175 = 175 3 x 50 = 150 325
55 5% x 10 x 175 = 87.50 3 x 55 = 252.50 252.50
(optimal)
CHAPTER 6 – ACCOUNTING FOR MATERIALS
Problem 1 - NormanCompanu\y
_____________
a) EOQ = \/ 2 x 8,000 x 40
25
= 160 units
= 240 units
Page 2
Total ordering cost = No. of orders x ordering cost
= 15 x 200
= P 3,000
2, AVERAGE
Received Issued Balance
1 1,600 x 6.00 9,600
5 400 x 7.00 2,800 2,000 x 6.20 12.400
9 400 x 8.00 3,200 2,400 x 6.50 15,600
16 800 x 6.50 5,200 1,600 x 6.50 10,400
24 600 x 9.00 5,400 2,200 x 7.18 15,800
27 1,000 x 7.18 7,180 1,200 x 7.18 8,620
Page 3
2. WEIGHTED AVERAGE
A. PERPETUAL
1. FIFO
Received Issued Balance
1 300 x 17.50 5,250
8 200 x 1750 3,500 100 x 17.50 1,750
10 900 x 18.00 16,200 100 x 17.50 1,750
900 x 18.00 16,200
18 100 x 17.50 1,750 400 x 18.00 7,200
500 x 18.00 9,000
20 1,200 x 18,25 21,900 400 x 18.00 7,200
1,200 x 18.25 21,900
25 400 x 18.00 7,200
600 x 18.25 10,950 600 x 18.25 10,950
2. AVERAGE
Received Issued Balance
1 300 x 17.50 5,250
8 200 x 17.50 3,500 100 x 17.50 1,750
10 900 x 18.00 16,200 1,000 x 17.95 17,950
18 600 x 17.95 10,770 400 x 17.95 7,180
20 1,200 x 18.25 21,900 1,600 x 18.175 29,080
25 1000 x 18.175 18,175 600 x 18.175 10,906
Problem 9 – Bedrock Company
a. Loss due to spoiled work is spread over all jobs
1. Work in process 1,320,000
Materials 360,000
Payroll 480,000
FO Applied 480,000
b. FO Control 24,000
Materials 4,000
Payroll 8,000
b. FO Control 1,250
Materials 500
Payroll 300
FO Applied (300 x 150%) 450
Problem 15 -
____________________
EOQ = \/ 2 z 100,000 x 413
25.30
a. Investment costs
Invoice price P 125.00
Excise tax ( 125.00 x 4%) 5.00
Insurance on shipment 2.00
Total P 132.00
b. Carrying costs
Cost of capital ( 132.00 x 15%) P 19.80
Inventory insurance 3.00
Inventory tax ( 125.00 x 2%) 2.50
Total P 25.30
c. Ordering costs
Shipping permit P 300.00
Processing costs 23.00
Unloading 90,00
Total P 413.00
TRUE/FALSE
1. True 6. False 11. True
2. False 7. False 12. False
3. False 8. False 13. False
4. True 9. False 14. False
5. True 10. True 15. False
Multiple choice
1, a 6. b 11. a 16. d 21. d 26. a
2, b 7. b 12. a 17. b 22. c 27. a
3, d 8. a 13. c 18. b 23. b 28. b
4, a 9. c 14. c 19. a 24. c 29. d
5, c 10. b 15. d 20. b 25. d 30. d