1.

“Total payroll for the month amounted to P39,000 consisting of P17,000 earned by
5 laborers working on the product; P6,000 for 2 factory overseers; P16,000 for 4
marketing employees. Applying the SSS table below, what would be the correct
CREDIT entries (both employees’ and employer’s contribution) to record the
expenses. (note: Entry is only for recording of expenses. No charging as direct/indirect
costs yet). ALL CREDIT ENTRIES SHOULD BE PROVIDED TO GET THE POINT.
Take note that there are two sets of entries: Employee's and Employer's contribution.

PAYROLL PAYROLL PAYABLE

2. “During the month, direct materials costing P90,000 and indirect materials P14,000
are used in the factory. If factory overhead is charged to production at 85% of any
direct costs incurred, what would be the correct DEBIT entries for the stated
transactions (both usage of materials and charging of overhead)?
WORK IN PROCESS CONTROL 178,400 & FACTORY OVERHEAD CONTROL 178,400

3. Tex Mftg. Company developed the following data for the current year. Direct labor
cost for the year is

18,000

4. The following items (in millions) came from a manufacturing company’s costing
system. How much is the company’s total conversion cost?
105,000,000

5. The following data are for a retail outlet store. How much is the cost of goods sold?

486,000

6. If the fixed cost for a product decreases and the variable cost (as a percentage of
sale) decreases what will be the effect on the break-even point in units?
DECREASED

7. Target Company sells its products at P20 per unit. The variable cost is P9.00 per
unit. Total fixed cost is P15,000. Current sales amounted to P54,000. If sales
decrease by 500 units, by how much would fixed expenses have to be reduced to
maintain the current net income?
5,500

8. At break-even point of 400 units, the variable cost is P400 and the fixed costs were
P200. What will the 401st and 402nd units sold contribute to profit before taxes?
.5 & 1

9. Using the graph below, how much more can sales be reduced without the company
having to incur any losses if they are currently selling 813 units?
_____________________ (Round-off selling price to 2 decimal places)

37.09

10. The Threat Company has 3 product lines – A, B and C – with contribution margins
of $5, $4, and $3, respectively. The president foresees sales of 168,000 units in the
coming period, consisting of 24,000 units of A, 96,000 units of B, and 48,000 units of
C. The company’s fixed costs for the period are $405,000. How many units of Product
C must be sold at break-even?
30,000