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Cost Acctg CHAPTER 1 PDF
Cost Acctg CHAPTER 1 PDF
CHAPTER 1
2. (a)
3. (d)
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4. (c)
5. (d)
Materials inventory, Jan. 1 P 17,000
Purchases 240,000
Freight in 3,000
Materials available for use 260,000
Materials inventory, Dec. 31 19,000
Materials used 241,000
Direct labor 320,000
Factory overhead 188,000
Factory cost 749,000 (1)
Work in process inventory, Jan. 1 12,000
Total 761,000
Work in process inventory, Dec. 31 13,000
Cost of goods manufactured 748,000
Finished goods inventory, Jan. 1 62,000
Goods available for sale 810,000
Finished goods inventory, Dec. 31 46,000
Cost of goods sold P764,000 (2)
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7. (c)
Direct materials used P100,000
Direct labor 250,000
Factory overhead:
Factory supplies P 6,000
Indirect labor 50,000
Machine maintenance and repair 10,000
Factory rent, light and power 24,000
Depreciation 10,000
Payroll taxes 30,000 130,000
Factory cost 480,000
Work in process inventory, Jan. 1 30,000
Total 510,000
Work in process inventory, Dec. 31 40,000
Cost of goods manufactured 470,000 (1)
Finished goods inventory, Jan. 1 50,000
Goods available for sale 520,000
Finished goods inventory, Dec. 31 60,000
Cost of goods sold P460,000 (2)
8. (b)
Raw materials inventory, beginning P 44,000
Purchases 600,000
Materials available for use 644,000
Raw materials inventory, ending 60,000
Raw materials used 584,000
Direct labor 240,000
Factory overhead:
Indirect labor P120,000
Taxes, utilities and depreciation 100,000 220,000
Factory cost 1,044,000
Work in process inventory, beginning 80,000
Total 1,124,000
Work in process inventory, end 96,000
Cost of goods manufactured 1,028,000
Finished goods inventory, beginning 50,000
Goods available for sale 1,078,000
Finished goods inventory, end 36,000
Cost of goods sold P1,042,000
9. (b)
Direct materials used P 500,000
Direct labor 600,000
Factory overhead 700,000
Factory cost 1,800,000
Work in process inventory, beginning 200,000
Total 2,000,000
Work in process inventory, end 250,000
Cost of goods manufactured 1,750,000
Finished goods inventory, beginning (squeeze) 610,000
Goods available for sale 2,360,000
Finished goods inventory, end 760,000
Cost of goods sold P1,600,000
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10. (d)
Direct materials, Dec. 31, 19x7 P 16,000
Purchases 170,000
Available for use 186,000
Direct materials, Dec. 31, 19x8 (squeeze) 65,000 (1)
Direct materials used (P301,000- P180,000) 121,000
Direct labor 180,000
Factory overhead [(P180,000 / 60%) x 40% ] 120,000
Factory cost 421,000
Work in process, Dec 31, 19x7 34,000
Total 455,000
Work in process, Dec. 31, 19x8 (squeeze) 25,000 (2)
Cost of goods manufactured 430,000
Finished goods, Dec. 31, 19x7 30,000
Goods available for sale 460,000
Finished goods, Dec. 31, 19x8 (squeeze) 60,000 (3)
Cost of goods sold (P500,000 x 80%) P400,000
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13. (d)
Materials inventory, beginning P 8,000
Purchases 36,000
Materials available for use 44,000
Materials inventory, ending 8,500
Materials used 35,500
Direct labor (P15,000 ÷ 2/3) 22,500
Factory overhead 15,000
Factory cost 73,000
Work in process inventory, beginning 8,000
Total 81,000
Work in process inventory, ending 15,000
Cost of goods manufactured 66,000
Finished goods inventory, beginning 7,000
Goods available for sale 73,000
Finished goods inventory, ending 10,200
Cost of goods sold P62,800 (1)
Sales P 72,000
Cost of goods sold 62,800
Gross profit 9,200
Operating expenses ( P72,000 x 6%) 4,320
Operating income 4,880
Other expenses (P72,000 x 5%) 3,600
Net income before income tax P 1,280 (2)
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14. (a)
Sales P182,000
Cost of goods sold 111,000
Gross profit 71,000
Operating expenses:
Marketing expenses P14,000
General and administrative expenses 22,900 36,900
Operating income P 34,100 (2)
15. (d)
Factory overhead:
Indirect labor P 22,000
Factory heat, light and power 11,220
Factory rent 18,500
Factory insurance 2,000
Production supervisor’s salary 5,000
Indirect materials used (P5,600+P16,500- P5,180) 16,920
Overtime pay [250 hours x (P22 x .5)] 2,750
Total P78,390 (1)
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16. (d)
17. (c)
18. (b)
Direct materials:
Materials inventory, Dec 1 P24,000
Purchases 56,000
Materials inventory, Dec 31 ( 20,000 ) P 60,000
Direct labor 40,000
Prime cost P100,000 (1)
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19. (d)
20. (a)
21. (a)
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22. (c)
23. (b)
Sales:
Product X (9,000 x P30) P270,000
Product Y (8,800 x P50) 440,000 P710,000
Cost of goods sold (Sch. 1) 512,600
Gross profit 197,400
Operating expenses 100,900
Operating income P 96,500 (2)
Sch. 1:
Manufacturing cost (P210,000 + P296,000) P506,000
Beginning inventories (P21,000 + P33,300) 54,300
Total 560,300
Ending inventories (P42,000 + P3,700) 45,700
Cost of goods sold at normal 514,600
Over-applied factory overhead ( 2,000 )
Cost of goods sold at actual P512,600
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24. (d)
25. (c)
Unit cost of equipment manufactured (P4,937, 500 ÷ 12,500 units) P395.00 (1)
Sales P 6,634,000
Cost of goods sold 4,901,500
Gross profit P 1,732,500
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26 (d)
27. (d)
28. (d)
29. (d)
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30. (c)
31. (a)
• P40,000/200%
** P30,000 x 50%
32. (b)
33. (b)
X + .80X = P25,200
180X = P25,200
X = P14,000 Direct labor
.80X = P11,200 Applied factory overhead.
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34. (c)
35. (d)
36. (b)
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37. (c)
38. (a)
(2) This can be computed by working backward from cost of goods sold as follows:
39. (d)
40. (b)
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41. (c)
42. (d)
44. (b)
45. (a)
Direct materials used P45,000 (cr)
Direct labor 11,500 (cr)
Applied factory overhead :
Job X (P5,000 x 200%*) P10,000
Job Y (P4,000 x 200%*) 8,000
Job Z (P2,500 x 200%*) 5,000 23,000 (cr)
Total manufacturing cost charged to Work in Process P79,500 (dr)
* P300,000 / P150,000 = 200%
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46. (d)
47. (a)
48. (a)
49. (a)
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50. (a)
52. (b)
54. (a)
55. (b)
56. (b)
57. (a)
Sales P1,090,000
Cost of goods sold at actual (P900,000 + P60,000) 960,000
Gross profit 130,000
Manufacturing expenses 140,000
Operating income (loss) P( 10,000)
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58. (c)
Sales P1,09`0,000
Cost of goods sold 943,200
Gross profit 146,800
Manufacturing overhead 140,000
Operating income P 6,800
59. (c)
60. (d)
62. (a)
63. (d)
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64. (c)
65. (a)
67. (d)
68. (c)
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PROBLEMS
Problem 1-1
a. Materials 13,500
Accounts payable 13,500
d. Payroll 27,000
Accrued payroll 27,000
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Problem 1-2
a. Materials 100,000
Accounts payable 100,000
c. Payroll 88,000
Withholding tax payable (10%) 8,800
SSS Premium Payable (5%) 4,400
Pag-ibig premium Payable 880
Medicare premium payable 1,320
Accrued payroll (net) 72,600
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Problem 1-3
a. Materials 64,000
Accounts payable 64,000
c. Payroll 100,000
Withholding tax payable (14%) 14,000
SSS Premium Payable (5%) 5,000
Medicare premium payable (. 5%) 500
Pag-ibig premium payable (. 5%) 500
Accrued payroll 80,000
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j. Cash 145,000
Accounts receivable 145,000
Problem 1-4
1. a. Materials 200,000
Accounts payable 200,000
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Problem 1-5
(1) Work in process 135,000
Materials 135,000
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Problem 1-6
b. Payroll 220,000
Payroll payable 220,000
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g. Cash 494,000
Sales discount 26,000
Accounts receivable 520,000
2. Joselyn Company
Statement of Cost of Goods Sold
Month Ended January 31, 2010
Problem 1-7
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c. Materials 600
Factory overhead control 200
Work in process (Job 622) 400
e. Payroll 38,000
Payroll payable 38,000
k. Cash 40,000
Accounts receivable 40,000
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Problem 1-8
(1) Nancy Corporation
Cost of goods sold statement
Month Ended September 30, 2010
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Problem 1-9
Supporting computations:
Finished goods inventories:
COGM + FG, beg – FG, end = COGS
Let X = Finished goods inventory beginning
4X = Finished goods inventory ending
Therefore:
P375,000 + X – 4X = P300,000
-3X = -P375,000
X = P25,000 finished goods, beginning
4X = P100,000 finished goods ending
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Problem 1-10
Journal Entries
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Problem 1-11
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(c ) Payroll 49,000
Accrued payroll 49,000
Problem 1-12
Computation of Costs:
1. Direct materials used P 710,000
Direct labor 1,300,000
Applied factory overhead (P1,300,000 x 160%) 2,080,000
Manufacturing cost P4,090,000
2. Supplies P 100,000
Indirect labor 900,000
Depreciation of building and factory equip. 400,000
Miscellaneous 550,000
Total actual factory overhead P1,950,000
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Problem 1-13
Assets
Cash (Schedule 1) P 38,000
Accounts receivable 20,000
Finished goods inventory [P12,000 – (1/3 x P12,000)] 8,000
Work in process inventory [P4,000 – (50% x P4,000)] 2,000
Materials inventory [P8,000 – (50% x P8,000)] 4,000
Prepaid expenses 1,000
Property, plant, and equipment (P60,000 – P8,000) 52,000
Total P125,000
Supporting Computations:
Schedule 1
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Sales P120,000
Cost of goods sold at actual (Sch. 2) 80,000
Gross profit 40,000
Operating expenses:
Marketing expenses P12,000
Administrative expenses 18,000 30,000
Net income P 10,000
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Problem 1-14
1. Cost of Jobs:
Job 234 Job 567
Direct materials used P 32,500 P 59,000
Direct labor 35,000 30,000
Applied factory overhead 35,000 30,000
Total factory cost P102,500 P119,000
Problem 1-15
1. Journal entries
b. Materials 720,000
Accounts payable 720,000
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Job 40 Job 41
Work in process, June 1 P 20,000 P 60,000
Current costs:
Direct materials 100,000 220,000
Direct labor 200,000 200,000
Applied FO 200,000 200,000
Total costs P520,000 P680,000
Or:
Work in process
Balance, June 1 P 80,000 P1,200,000 (i)
(c) 560,000
(d) 620,000
(h) 620,000
1,880,000 1,200,000
Balance, June 30 P680,000
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Problem 1-16
Jenna Company
Statement of Cost of Goods Sold
Year Ended December 31, 2010
Problem 1-17
Jenny Incorporated
Statement of Cost of Goods Manufactured and Sold
Month Ended May 31, 2010
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Problem 1 – 18
1. Journal Entries:
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Sales P412,500
Cost of goods sold:
Finished goods inventory, May 1 P 28,800
Cost of goods manufactured 394,400
Goods available for sale 423,200
Finished goods inventory, May 31, (Job 812) 115,000 308,200
Gross profit 104,300
Operating expenses 74,500
Net profit P 29,800
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Problem 1-19
Supporting Computations:
Job 202 Job 203 Job 204 Job 205 Job 206 Job 207
Work in process, April 1 P4,700 P3,280 P4,160 P - P - P -
Current costs:
Direct materials 1,250 555 970 2,500 1,980 2,450
Direct labor 2,000 1,500 1,000 2,100 1,000 1,900
Applied FO (P16/DLH) 1,600 1,200 800 1,680 800 1,520
Total cost P9,550 P6,535 P6,930 P6,280 P3,780 P5,870
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Problem 1-20
(1)
Job 204 Job 205 Job 206 Job 207
Work in process, March 1 P50,460 P118,060 P124,101 P -
Cost added this month:
Direct materials 9,480 11,320 10,490 22,440
Direct labor 26,844 22,750 28,920 20,370
Applied factory overhead 7,717.65 7,475 8,314.50 6,693
Total cost P94,501.65 P159,605 P171,825.50 P 49,503
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Problem 1-21
Tanny Company
Statement of Cost of Goods Manufactured and Sold
Year Ended December 31, 2010
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Problem 1-22
2. Sales P1,400,000
Cost of goods sold 772,000
Gross profit 628,000
Selling and administrative expenses 140,000
Net profit P 488,000
Problem 1-23
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Problem 1-24
Computations:
1. P50,000
2. P200,000
3. P100,000
4. P346,000
5. P350,000
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