PROBLEM #1

1. Direct materials used 205,000

Materials – end 90,000
Materials – beg. ( 95,000)
Direct materials purchased 200,000

2. Total manufacturing costs 675,000

Factory overhead ( 175,000)
Materials used ( 205,000)
Direct labor costs 295,000

3. Cost of goods available for sale 775,000

Finished goods, end (110,000)
Cost of goods sold 665,000

4. Sales 900,000
Cost of goods sold (665,000)
Gross profit 235,000

PROBLEM #2 (start with No.. 3 then No. 2)

1) Cost of goods manufactured 168,000
WP, January 31 95,000
WP, January 1 ( 80,000)
Total manufacturing cost 183,000
Direct labor (63,000 / 75%) ( 84,000)
Factory overhead ( 63,000)
Direct materials used 36,000
Materials January 31 50,000
Indirect materials used 1,000
Purchases ( 46,000)
Materials, January 1 41,000

2) Cost of goods sold – normal 150,000

Finished goods, January 31 78,000
Finished goods, January 1 ( 60,000)
Cost of goods manufactured 168,000

3) Sales ( 25,000 / 12.5%) 200,000

Selling and administrative expenses ( 25,000)
Net income (25,200)
Cost of goods sold, actual 149,800
Overapplied FO
Actual 62,800
Less: Applied 63,000 200
Cost of goods sold, normal 150,000
PROBLEM #3
Journal entries
1. Materials 28,000
Accounts payable 28,000

2. Work in process 22,000

Factory overhead control 3.000
Materials 25,000

3. Materials 800
Work in process 500
FO Control 300
4. Accounts payable 1,000
Materials 1,000

5. Payroll 39,000
Withholding taxes payable 3,025
SSS Premiums payable 1,600
Phil Health contributions payable 375
Pag-ibig funds contributions payable 1,200
Accrued payroll 32,800

Accrued payroll 32,800

Cash 32,800

6. Work in process 33,400

Factory overhead control 5,600
Payroll 39,000

7. Factory Overhead Control 3,575

SSS Premiums payable 2,000
Phil Health cont. payable 375
Pag-ibig cont. payable 1,200

8 FO Control 15,000
Accum Depr. 3,000
Prepaid ins. 950
Accounts payable 11,050

9. Work in process 26,720

FO Applied 26,720

10. Finished goods 72,220

WP 72,220
Job 401 31,720
Job 402 40,500
 11. Accounts receivable 44,408
Sales (31,720 x 140%) 44,408

Cost of goods sold 31,720

FG 31,720

12. Cash 35,000

Accounts receivable 35,000

Cost of goods sold statement

Direct materials used

Materials, August 1 22,000
Purchases 28,000
Less. Purchase returns 1,000 27,000
Total available for use 49,000
Less: Materials, Aug. 31 24,800
Ind. Materials 2,700 27,500 21,500
Direct labor 33,400
Factory overhead 26.720
Total manufacturing costs 81,620
Work in process, Aug. 1 18,500
Cost of goods put into process 100.120
Less: Work in process, Aug. 31 27,900
Cost of goods manufactured 72,220
Finished goods, Aug. 1 25,000
Total goods available for sale 97,220
Less: Finished goods, Aug. 31 65,500
Cost of goods sold - normal 31,720
Add. Under applied factory overhead 155
Cost of goods sold 31,875