MAYORES, GINA R.

BSA-BCC cost accounting and control

PROBLEM A

1 Cost of Job A1 1
Direct Materials P 19,000
Direct Labor 5,000
Overhead (DL x 140%) 7,000
Total Cost of JobA1 31,000 31,000

3 Cost of Job A1 Rework

Direct Materials P 4,000
Direct Labor 1,000
Overhead (DL x 140%) 1,400
Total Cost of JobA1 Rework 6,400 6400
Total P 37,400

2 Particulars Debit Credit

Overhead control 5,000
Direct Materials 4,000 2
Direct Labor 1,000

The effect of the normal spoilage is already taken in the

overhead applied, thus, ignored

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 ACTIVITY 3

PROBLEM B PROBLEM C

Cost of Job A1 1
Direct Materials P 19,000
Direct Labor 5,000
Overhead (DL x 140%) 7,000
Total Cost of JobA1 31,000 31,000

Cost of Job A1 Rework

Direct Materials P 4,000
Direct Labor 1,000
Overhead (DL x 140%) 1,400
Total Cost of JobA1 Rework 6,400 6400
Total 37,400

Particulars Debit Credit 2

Overhead control 8,000
Raw materials inventory 4,000
Salaries and wages payable 2,000
Applied factory overhead 2,000

Cost of Job A1
Direct Materials P 19,000
Direct Labor 5,000
Overhead (DL x 140%) 7,000 3
Total Cost of JobA1 31,000 31,000

Cost of Job A1 Rework

Direct Materials P 4,000
Direct Labor 2,000
Overhead (DL x 140%) 2,800
Total Cost of JobA1 Rework 8,800 8800
Total P 39,800

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PROBLEM C PROBLEM D

No. of Spoiled Invitations 75 1

Cost per invitation * 0.95
Cost of the spoiled invitation 71.25

As this amounts to normal loss cost of spoiled

invitations should be charged to profit or loss 2
account.

Direct Materials P 360

Direct Labor 90
Overhead 120
Total P 570
/ no. of wedding invitation /600
Cost per invitation P 0.95
3

Total cost of invitation P 570

Cost plus Pricing Percentage *160%
342

Total cost of invitation P 570

Cost plus Pricing 342
Job C11 P 912

No. of Spoiled Invitations 50

Cost per invitation * 0.95
Cost of the spoiled invitation P 47.5

The spoilage os attributable to demanding

requirements of the job , and the cost is added to
the job cost.

Direct Labor 90
Overhead 120
Total P 570
/ no. of wedding invitation /600
Cost per invitation P 0.95

Total cost of invitation P 570

Cost plus Pricing Percentage *60%
342

Total cost of 600 invitation P 570

Total cost to reprint spoiled invitations 47.5
Total cost of invitation 617.5
Mark up 617.50 x 60% 370.5
Job D22 P 988
PROBLEM D

Direct materials (75 letters x 0.45) P 33.75

Direct Labor (1.2 hrs x 8 per direct hour) 9.6
Overhead (1.2 hrs x 4 per direct hour) 4.8
Total Original Cost P 48.15

Direct materials (75 letters x 0.45) P 33.75

Direct Labor (1.70 hrs x 8 per direct hour) 13.6
Overhead (1.70 hrs x 4 per direct hour) 6.8
Total Cost in Reworking P 54.15

The price charged for the new letters is 75 letters multiplied P 0.60
for a total of P45.