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Cost Accounting Problems
Cost Accounting Problems
Problem 3
Dona company submits the following date for May, 2014
Direct labor cost P 160,000
Cost of goods sold 250,000
Factory overhead – applied at 150% of direct labor costs.
Inventories May 1, 2014 May 31, 2014
Finished goods P 150,000 P 122,000
Work in process 129,200 124,000
Materials 124,000 115,000
Problem 4
Ram Company completed the following transactions for October, 2014
a) Purchased on account direct materials of P 150,000.
b) The factory payroll was recorded. Direct labor P 56,000; indirect labor P 19,000. Employee payroll
deductions were recorded as follows:
Requirement:
1. Entries to record the transactions given above.
2. Statement of cost of goods sold.
Problem 5
Darvin Company contained the following account balances:
Cash P 100,000
Accounts Receivable 60,000
Finished Goods 35,000
Work in Process 18,000
Materials 50,000
Accounts Payable 10,000
Accrued Payroll 8,000
Common Stock 200,000
Retained Earnings 45,000