Overhead is charged to production at 70% of the direct materials cost.

Jobs 475,477, and 478

have been delivered to the customer. Samuelson's Work in Process inventory balance on June
30 WOS:
a. P6,450. b. P2.860. c. P2.300. d. P2.720.

24. Knowlton Company applies overhead to completed jobs on the basis of 70% of
direct labor cost. If Job 501 shows P21,000 of manufacturing overhead applied, the direct labor
cost on the job was: a. P14.700 b. P21.000. c. P30.000
d. P27.300 25. The balance in White Company's Work In Process inventory account was
P15,000
on August 1 and P18,000 on August 31. The company incurred P30.000 in direct labor
cost during August and requisitioned P25,000 in raw materials (all direct material). If the
sum of the debits to the Manufacturing Overhead account total P28,000 for the month,
and if the sum of the credits totaled P30.000, then: a. Finished Goods was debited for
P82.000 during the month. b. Finished Goods was credited for P83,000 during the
month C. c. Manufacturing Overhead was underapplied by P2,000 at the end of
the month. d. Finished Goods was debited for P85.000 during the month. 26. Under
Lamprey Company's job-order costing system, manufacturing overhead
is applied to Work in Process inventory using a predetermined overhead rate. During
January, Lamprey's transactions included the following:
Direct materials issued to production .... P 90.000 Indirect materials issued to
production.. 8,000 Manufacturing overhead cost incurred ...... 125,000 Manufacturing
overhead cost applied...... 113,000 Direct labor cost incurred ................ 107.000
Lamprey Company had no beginning or ending inventories. What was the cost of goods
manufactured for January
a. P302.000 b. P310.000 c. P322,000 d. P330.000

Wayne company uses a job costing system and applies overhead to jobs using a
predetermined overhead rate based on direct labor-hours. The company had the
following inventories at the beginning and end of March:
March 1 March 31 Direct Materials....... P36,000 P30,000 Work in
Process........ 18.000 12,000 Finished Goods......... 54.000 72.000
The following additional data pertain to operations during March:
Direct materials purchased... P84,000 Direct labor cost............ P60,000
Direct labor rate............P7.50 per direct labor-hour Overhead rate..............
P10.00 per direct labor-hour
Page 6 of 9