BAGON, Jerome L.

Cost Accounting chapter 1 and 2

BSA 2 B Prelims Reviewer

1. Nebula purchased P124, 000 of raw materials on account.

2. Upon inspection, nebula found some defective materials amounting to P4,000 which they
returned to the supplier.
3. Assume that raw materials requisition was received for P95, 000, including indirect materials of
P5,000 to be use for the following jobs:

4. Accrual of payroll

5. Distribution of payroll to various department is:

6. Assume that the payroll was paid at the end of the month
7. Accrued the employer contributions
BAGON, Jerome L. Cost Accounting chapter 1 and 2
BSA 2 B Prelims Reviewer

8. Assume that nebula incurred the following general factory expenses during the month of july.
For the purposes of illustration, also assume that none of these expenses had been paid and
Nebula uses accrued expenses account to recognize this transactions.

9. Assume that nebula recognized P40, 000 depreciation expense of factory equipment for the
month of july.
10. Assume that nebula uses direct labor hours to compute the predetermined overhead rate and
that rate is P30 per direct labor hour. Durig the month, nebula incurred the following direct
labor hours:

11. Assuming the debit balance in factory overhead control is not material, the journal entry to
close the underapplied factory overhead is:
a. 1st approach
b. 2nd approach
12. Compound entry to record the above expenses
BAGON, Jerome L. Cost Accounting chapter 1 and 2
BSA 2 B Prelims Reviewer

13. Assume that job 102 is completed and transferred into finished goods warehouse
A. what is the unit cost of job 102?

14. Journal entry to record the sale

15. Journal entry to record the cost of goods sold

Additional requirements:

Make a statement of cost of goods manufactured

Make an income statement

(Nebula manufacturing company, for the month ended July 31, 2015)