Gapas, Daniel John L.

Cost Accounting and Control

E-TIVITY 11

PROBLEM 1
Requirement A
The two methods shows that it can either be charged to the Job or charged to the Factory
Overhead Control. Charging to the Job Method recognizes the overtime so it increases the cost of
the job while charging it to the Factory Overhead Control doesn’t.
Requirement B

Job 401 Job 402 Job 401 Job 402

Direct Materials P28,000 P37,000 P28,000 P37,000
Direct Labor 18,000 23,000 18,000 23,000
Factory 5,600 11,200 7,600 15,200
Overhead
Overtime 6,000
Total P51,600 P77,200 P53,600 P75,200

Charged to Factory Overhad Control

Other Factory Cost P16,800
Overtime 6,000
Total P22,800 x 1/3
X 2/3
PROBLEM 2
Requirement A
OVERTIME Overtime Total Pay
Premium
Employee No. Hrs Rate/ Regular Hours Rate
Hr. Pay
Austria, B 42 P36 P1,512 2 P18 P36 1,548
Bautista, D. 43 36 1,548 3 18 54 1,602
De Santos, 44 45 1,980 4 22.50 90 2,070
M.
Motus, R. 40 30 1,200 - - - 1,200
Reyes, A. 40 30 1,200 - - - 1,200
Total P7,440 P180 P7,620

Requirement B
1. Payroll 7,620
Accrued Payroll 7,620
To record Payroll

2. Accrued Payroll 7,620

Cash 7,620
To record payment of payroll

3. Work in Process (1,512+1,548+1,980) 5,040

Factory Overhead Control (1,200+1,200+180) 2,580
Payroll 7,620
To record distribution of Payroll

PROBLEM 3
Requirement 1

Employee Guaranted Total Pay Piece Rate Deficiency Total Payroll

Minimum
Wage
R. Cruz P2,000 (240x7.50) P1,800 P200 P2,000
C. Briones 2,000 (286x7.50) 2,145 2,145
C. David 2,000 (275x7.50) 2,062.50 2,062.50
A. Mendoza 2,000 (240x7.50) 1,800 200 2,000
F. Rivera 2,000 (225x7.50) 1,687.50 312.50 2,000
R. Tolentino 2,000 (285x7.50) 2,137.50 2,137.50
P12,000 P11,632.50 P712.50 P12,345
 Reuirement 2
P11,632.50
Requirement 3
P712.50

PROBLEM 4
Employees Reg. Hrs Rate/Hr. Pay Overtime Time Pay Total Pay
Rate
Castro 42 P40 P1,680 2 20 P40 P1,720
Ardina 45 40 2,250 5 25 125 2,375
Briones 48 40 1,920 8 20 160 2,080
David 48 40 1,920 8 20 160 2,080
Fajardo 45 40 1,800 5 20 100 1,900
Tomas 4 40 1,680 2 20 40 1,720
Villas 40 40 1,600 - - - 1,600
P12,850 P625 P13,475

Employee Pay Previous Total Tax SSS Phil Pag- Total Take
s Eearnings Earning Withheld Premium Health ibig Deductions Home
s Pay
Castro P1,720 P5,600 P7,320 - P300 P150 P100 P550 P1,170
Ardina 2,375 7,500 9,875 - 400 150 100 650 1,725
Briones 2,080 6,500 8,580 - 340 150 100 590 1,490
David 2,080 6,200 8,280 - 340 150 100 590 1,490
Fajardo 1,900 5,900 7,800 - 320 150 100 570 1,330
Tomas 1,720 5,800 7,520 - 300 150 100 550 1,170
Villas 1,600 5,200 6,800 - 280 150 100 530 1,070
P13,47 P42,700 P56,175 P2,280 P1,050 P700 P4,030 P9,445
5
Requirement 2
1. Payroll 13,475
SSS Premiums Payable 2,280
PhilHealth Contributions Payable 1,050
Pag-ibig Funds Payable 700
Accrued Payroll 9,445
To record payroll

2. Accrued Payroll 9,445

Cash 9,445
To record payment of payroll

3. Work in Process(12,580+1,680-500) 11,670

Factory Overhead Control (1,680+125) 1,805
Payroll 13,475
To record payroll distribution
MULTIPLE CHOICE

1. B
2. B
3. A
4. B
5. A
6. A
7. D
8. D
9. A
10. C
11. B
Work in Process inventory JOB 101
20 workers 8 workers Kyle Total
10.50 7.50 9.25
x X X
40 20 16
=420 =150
x X
20 8
8,400 1,200 148 9,748

Work In Process inventory JOB 1011

8 workers
7.50 x 20 = 150
150 x 8 = 1,200
(9.25 x 4 hours = 37)
=1,250 + 37
= 1,287

12. C

Regular Pay (44 x 24) = 1,056

Overtime Premium (12 x 4) = 48
 Total Earnings 1,104

13. D
Beginning Raw Materials inventory 100,000
Add: Raw materials purchased 135,000
Less: Ending raw materials inventory (175,000)
Materials used 60,000

Total manufacturing cost 960,000

Less: Materials used (60,000)
Factory Overhead(227,500+20,000) (247,500)
Total 692,500
14. D
Units Produced x Piece Rate Minimum Guaranteed Wage Payroll Charged to FO
per week(Deduct)
67 x 11.25 = 753.75 875 121.25
78 x 11.25 = 877.50 875
80 x 11.25 = 900 875
82 x 11.25 = 922.50 875
72 x 11.25 = 810 875 60
75 x 11.25 = 843.75 875 31.25
Total 217.50

15. D
420 / 10 shirts = P42/shirt
x4
P168