E-1Uniliver, a manufacturing company, incurs the costs shown below:

Cost Product cost Period cost Direct cost Indirect cost

Prime Conversion
Direct materials used
Taxes and licenses (plant)
Payroll for production supervisor
Accident insurance on factory
workers
Wages-assembly workers
Small tools used
Advertising
Office supplies used
Depreciation-factory bldg.
Factory utilities
Administrative salaries
Bad debt expense

REQUIRED: a.) classify each cost as either a product cost or a period cost. If product cost, identify it as prime
and/or conversion cost. b.) classify each as either a direct or indirect cost using the product as a cost object.

E-2 On January 1, the balances of Woodywood Company were as follows: Finished Goods, P 225,000; Work in
Process, P 100,000; Materials, P 95,000. During January, the following transactions were completed:

a. Materials were purchased, P 300,000.

b. Direct materials amounting to P 210,000 were issued from the warehouse.
c. Indirect materials amounted to P 30,000.
d. Total salaries and wages for January amounted to P 130,000, including salaries of salesmen P 30,500
and administrative salaries of P 25,000. Labor time tickets show that P 65,500 of the labor cost was
direct labor.
e. Other factory overhead costs incurred on account were P 12,000.
f. Total factory overhead is closed to and transferred to Work in Process account.
g. Finished products totaled P 158,500 and finished goods in the shipping room in January 31 totaled P
48,000.
h. Customers to whom shipments were made during the month were billed for P 350,000.

REQUIRED: Prepare journal entries for the ff. transactions.

E-3 The December 31, 2018 trial balance of KIM Company showed the following information:

Sales P 14,000,000 Sales return & allow. P 20,000

Purchases 2,400,000 Factory overhead 1,880,000

Freight-in 30,000 Advertising expense 150,000

Direct labor 3,200,000 Delivery expense 60,000

Sales salaries 200,000

Inventories:

12/31/18 1/01/18
Finished goods P 460,000 P 620,000

Work in process 130,000 120,000

Materials 190,000 170,000

REQUIRED: Compute for the following:

1.) Total manufacturing cost 5.) Gross profit

2.) Total goods placed in process 6.) Selling expenses
3.) Cost of goods manufactured 7.) General and admin expenses
4.) Cost of goods sold 8.) Net income/ net loss

E-4 On September 2018, Zocco Company incurred the following costs: Direct materials, P 200,000; Factory
overhead, P 250,000; and Direct labor, P 105,000. Inventories were as follows:

Beginning Ending

Finished goods P 350,000 P 200,000

Work in process 360,000 350,000

Materials 250,000 125,000

REQUIRED:

a. Total manufacturing cost for the month of September.

b. The cost of goods manufactured for the month of September.
c. The cost of goods sold for the month of September.

E-5 Coco company manufactures tables. The following information was available at the beginning and ending
of August:

Beginning Ending

Materials inventory P 42,500 P 22,000

Work in process inventory 45,500 16,000

Finished goods inventory 25,500 12,000

During august, materials costing P 126,000 were purchased, direct labor cost totaled P 109,600, and factory
overhead was P 112,500 which includes P 22,500 of indirect materials.How much is the cost of good
manufactured for August?

E-6 On June 2018, Flaming Company’s purchases materials amounting to P 125,000, and the cost of goods sold
for June was P 130,000. Factory overhead was 300% of direct labor cost. Other information pertaining to
Flaming Company’s inventories and production for June is as follows:

Inventories Beginning Ending

Finished goods P 142,500 P 40,000

Work in process 25,500 17,000

Materials 14,000 9,500

REQUIRED:
 a.) Prepare schedule of cost of goods manufactured.
b.) Compute the prime cost charged to work in process.
c.) Compute the conversion cost charged to work in process.

E-7 Jing Inc. had a cost of goods manufactured for the month of July equal to P 100,000; raw materials used P
29,000; cost of goods sold, P 120,000; direct labor, P 28,000; purchases of materials, P 45,000; cost of goods
available for sale, P 125,000; total salaries and wages, P 58,000. Work in process was P 35,000 on July 1 and P
15,000 on July 31. The company uses a sole account for direct and indirect materials.

Required:

a.) Cost of goods sold statement

b.) Journal entries to record:
1.) The purchase of materials on account
2.) The use of materials which includes indirect materials of P 2,000.
3.) The accrual payroll in the production department which includes indirect labor of P 11,500.
4.) The distribution of factory labor cost
5.) The transfer of completed work to finished goods
6.) The sales on account, at a mark-up equal to 150% of production cost.