CHAPTER 3

27. A
28. B
29. A
30. B
31. A
32. C
33. B

34. B

FIFO LIFO
21,000 18,900
20% 20%
4200 3780

4,200
3,780
420

35. D

Units Cost Total Cost

8,000 200 1600000
4,000 200 800000
4,000 200 800000
12,000 240 2880000
16,000 230 3680000

36. A

Order Point 1,400

Less: Usage 600
800
EOQ 4000
4,800

37. B

EOQ = √2QO/C
360 = √2(n)(5)/0.20

Reverse Computation
360
360
129600
0.20
 25920
(2*5)
2592

38. AA

EOQ = √2QO/C
EOQ = √2(54,000)(90)/3
EOQ = √9,720,000/3
EOQ = √3,240,000
EOQ = 1,800

Order Cost ((54,000/1,800)*90) 2700

Carrying Cost ((1,800/2)*3) 2700
Annual inventory cost 5400

39. B

(320,000/40,000) 8
Storage 32
Insurance 20
60
 CHAPTER 4
36. D
37. DC

P Q R S T
Regular 4,000 6000 4000 8000 11000
Overtime 1050 2250 1500 3000 3712.5
Sunday 200 600 400 - 1650

Overtime 350 750 500 1000 1237.5

Sunday 100 300 200 - 825
450 1050 700 1000 2062.5

FOH Control 5262.5

(DLH*HR) 4,800 7,800 5,200 10,000 14,300

Total 4800 7800 5200 10000 14300

WIP 42100

38. AAC

200*70 14000
200*90 18000
200*80 16000
200*65 13000
61000

Minimum Wage = 15,000

15,000 - 14,000 = 1,000 1,000

15,000 - 13,000 = 2,000 2,000
3,000

61,000
3,000
64,000

39. BCA

Regular Overtime Premium

50 50 25
40 5 5
2000 + 250 + 125 = 2375
 Specific Job
WIP 2,375
Payroll 2,375

FOH Control
WIP 2,250
FOH Control 125
Payroll 2,375

40. ABC

3000 800 3000

4500 900 3600
2400 1700 6600
2700 5
3600 8500
16200

41. C
42. A

WIP 325,000
FOH 35,000
Payroll 360,000

43. BDBA

WIP 2,500,000 FOH

FOH 1,000,000 1,000,000
Administrative Expense 1,250,000 182000
Sales Salary 250,000 1,182,000
Payroll 5,000,000

FOH 182000 Period Costs

Administrative Expense 65000 1,250,000
Selling Expense 13000 250,000
Payroll 260,000 65000
13000
1,578,000
 Gross Payroll 5,000,000
Employee's Deduction 660000
4,340,000

44. AC

WIP 50,000
Payroll 50,000

Payroll 50,000
Taxes Payable 6,500
SSS Premium Payable 1,000
Philhealth Premium Payable 200
Pag-ibig Premium Payable 100
Accrued Payroll 42,200

45. DCBC

Regular Overtime Premium

100 100 50
40 10 10
4000 1000 500

Specific Job
WIP 5,500
Payroll 5,500
No FOH control account 0

FOH Control
WIP 5,000
FOH Control 500
Payroll 5,500

46. BCC

Regular Overtime Premium

400 400 200
40 5 5
16000 2000 1000

WIP 18,000
FOH Control 1,000
Payroll 19,000
 CHAPTER 5
19. C
20. D
21. A
22. B
23. A
24. D
25. A
26. D
27. B
28. D
29. B
30. A
31. B
32. D
33. A
34. A
35. D
36. C
37. D
 CHAPTER 6

45. A

Jam 2,240
Gem 1,680
3,920

78,400
Divided by: 3,920
20

46. D

1,552,500 52,500
52,500 22,050
30 30,450

30,450
30
913500

47. BADDCCB

Procurement 1,480,000 Production

Purchase Orders (16k+16k+48k) 80000 Machine Hours (8k+32k+40k)
18.5

Scheduling 1,000,000
Production Orders (1.2k+600+3.2k) 5000
200

Materials handling 2,000,000

Moves (5.6k+3.2k+16k) 24800
80.64516

Product Development 2,920,000

Changes (40+40+100) 180
16222.22

Procurement Ratio 1:1:3

Scheduling Ratio 6:3:16
Materials handling 7:4:20
Product development 2:2:5
Production 1:4:5

Pants Shorts Slacks Total

 Procurement 296000 296000 888000 1,480,000
Scheduling 240000 120000 640000 1,000,000
Materials handling 451612.90323 258064.5 1290322.5806452 2,000,000
Product development 648888.88889 648888.9 1622222.2222222 2,920,000
Production 600000 2400000 3000000 6,000,000
2236501.7921 3722953 7440544.8028674
8,000 16,000 10,000
279.56272401 232.6846 744.05448028674
48. BADA
500,000
2/10
100,000
5,000
20

500,000
5/10
250000
30,000
8.33333333333333

10,000:5,000:10,000
2:1:2

500,000
1/5
100000
15,000
6.66666666666667

100:150:250 100 + 150 + 250 = 500

100/500 = 1/5 or 20%

150/500 = 3/10 or 30%
250/500 = 1/2 or 50%

20%:30%:50%

49. ADC

900,000
3,000
300

146,000 200,000 900,000

750 500 3,000
195 400 300
 GS HS
Act 1 97500 48750
Act 2 40000 160000
Act 3 90000 810000
227500 1018750
45740 79,130
5.0032988784 12.87438

50. ACB

1,000,000
1/5
200000
400
500

1,000,000
4/5
800000
800
1000
DL Hours
400:1600
X Y
1,000,000 1,000,000
4/20 16/20
200000 800000
400 800
500 1000

51. BDBC

DL Hours
2:1:2

450,000
700,000
900,000
2,050,000
1/5
410000
30,000
13.6666666666667

Setups Ratio 2:3:5

Shipments Ratio 8:9:11
 Changes Ratio 3:2:1

Ben Ge Ana Total

Setups 90000 135000 225000 450,000
Shipments 200000 225000 275000 700,000
Changes 450000 300000 150000 900,000
740000 660000 650000 2050000
Units Produced 10,000 30,000 60,000
OH cost - ABC 74 22 10.833333333333

52. BAB

Activity Rate
Setups (1M/400K) 2.5
Inspections (600K/200K) 3
Assembly (2.6M/500K) 5.2

Magnum Cornetto
Setups (6*2.5) 15 Setups (4*2.5) 10
Inspections (3*3) 9 Inspections (6*3) 18
Assembly (2*5.2) 10.4 Assembly (4*5.2) 20.8
34.4 48.8

Cornetto - units 40,000

Total FOH per unit 48.8
1952000

53. BAA

Activity 3 390,972
13,200
29.619090909

Applied Debited
Act 1 179,394 179,394
Act 2 175,428 175,428
Act 3 390,702 390,702
745,524 745,524

54. BB

Fabrication Processing
Wages 320000 1040000
Depreciation 165000 385000
Occupancy 30000 420000
515000 1845000
50,000 4,000
 10.3 461.25

55. D

Activity Rate
Assembly 13.54
Processing orders 25.89
Inspection 76.5

Activity Based Cost

Assembly 44682
Processing orders 6472.5
Inspection 15300
66454.5

Sales (2,350*590) 1386500

DM 473525
DL 496108.50
ABC 66,454.50 1036088
350412

56. BB

Setups 300,000
50,000
6

Quality Inspections 600,000

120,000
5

57. D

Assembly 11.15
Processing Orders 30.78
Inspection 76.9

Machine Hours 23192

Orders 3693.6
Inspection Hours 4614
ABC 31499.6

Sales 81864
DM (96.28*360) 34660.8
DL (23.24*360) 8366.4
ABC 31499.6 74526.8
7337.2
58. CAB

Beer Soft Drink

Setups (3*1) 3 Setups (3*2) 6
Inspections (5*4) 20 Inspections (5*1) 5
Assembly (15*1) 15 Assembly (15*3) 45
38 56

Soft drink units 2,000

FOH per unit 56
112000

59. BAACDDA

5,000*5 25000
2,500*7.50 18750
1,000*12.50 12500
56250

Materials Handling 112,500

56,250
2

0.50*5,000 2500
1.50*2,500 3,750
2.50*1,000 2500
8750

Machinery 420,000
8750
48

5,000
2,500
1,000
8,500

Finishing 85,000
8,500
10

500
250
100
 850

Packaging 85,000
850
100

Materials Handling Ratio 4:3:2

Materials Insertion 4:3:2
Automated Machinery 2:3:2
Finishing 10:5:2
Packaging 10:5:2

X Y Z Total
Materials Handling 50000 37,500 25,000 112,500
Materials Insertion 550000 412500 275000 1,237,500
Automated Machinery 120000 180000 120000 420,000
Finishing 50000 25000 10,000 85,000
Packaging 50000 25000 10,000 85,000
820000 680,000 440,000
Units Produced 5,000 2,500 1,000
164 272 440
6,000,000
80000
75
 CHAPTER 7

64. BBAA

Direct Materials, beg. 217,750

DM purchased 536,250
754,000
DM, end. 201,500
DM used 552,500
DL 650,000
FOH - applied (81,250*5.75) 467187.5
Total Manufacturing Cost 1669687.50
WIP, beg. 471,250
2140937.50
WIP, end. 555,750
COGM 1585187.50
FG, beg. 276,250
1861437.50
FG, end. 253500
COGS 1607937.50
Over-applied FOH 38187.50
Actual COGS 1569750.00

65. CD

Direct Labor Hours (3,060/8.50) 360

FOH per DL Hours (1,530/360) 4.25

Direct Labor Hours (4,284/4.25) 1008

DL (1,008*8.50) 8568
FOH 4,284
Conversion Costs 12,852

WIP, end. 40,800

Other jobs cost 23,886
Job #3 Total Cost 16,914
Less: Conversion Costs 12,852
4,062

66. AA

Total Cost 630000

COGS -542,500
87,500

Conversion Costs:
 FOH 16,100
DL (16,100/80%) 20125 36,225
DM 51,275

67. A

FOH Rate (163,800/136,500) 120%

DM DL FOH (120% of DL) Total

501 - 169,000 202,800 371800
502 253,500 292,500 351,000 897,000
503 344,500 305,500 366,600 1,016,600
504 305,500 344,500 413,400 1,063,400
3,348,800

Total Manufacturing Cost 3,348,800

WIP, beg. 527800
3,876,600
WIP, end. 1,063,400
COGM 2,813,200

68. A

Actual FOH 1,372,000

Under-applied FOH 25,200
Applied FOH 1,346,800
FOH Application 8
Actual Labor Hours 168350

69. BDDC

DL hours (#2) 23,250

DL per hour 8.5
FOH applied (#2) 197625

Indirect Materials (900,000*(100%-80%)) 180000

Indirect Labor 247,500
Other actual FOH 270,000
Actual FOH 697500

DL hours (18,750+23,250+31,500) 73500

DL per hour 8.5
DL 624750
120%
749700
 Job #1
DM (900,000*30%) 270,000
DL (18,750*8.50) 159375
FOH (DL*120%) 191250
TMC 620,625

Job #2
DM (900,000*25%) 225000
DL (23,250*8.50) 197625
FOH (DL*120%) 237150
TMC 659775

Job #3 is finished, so only Job #1 and #2 remain

TMC (#1) 620,625

TMC (#2) 659775
WIP, end. 1,280,400

70. ADB

DM, beg. (sq) 98,000

Purchases 56,000
Less: DM, end. 105,000
DM used 49,000

DL hours 31,500
5
FOH - applied 157500

DM used 49,000
DL 164,500
FOH - applied 157500
TMC 371,000

71. D

Job #11
DM 3,325
DL 6,650
FOH - applied 19950
29,925

Job #12
DM 11,400
DL 9,025
FOH - applied 27075
47,500
 Job #13
DM 7,790
DL 5,130
FOH - applied 15390
28,310

TMC 105,735
WIP, beg. (sq) 60,990
WIP, end. 28,310
COGM 138,415

72. BA

DM requisitioned 114,000
DL 78,000
FOH 285000
TMC 477,000
WIP, beg. 247,000
WIP, end. (sq) 222,000
COGM 502,000

DM requisitioned 114,000
DL 78,000
FOH 296,000
TMC 488,000

73. BBDA

DM used 471,600 DM, beg.

DL 294,120 Purchases
FOH - applied 419520 DM, end. (sq)
TMC 1,185,240 DM used
WIP, beg. 224424
Cost of goods put into process 1,409,664
WIP, end. 203,244
COGM 1,206,420

74. DBA

DL 1,350,000 Factory Overhead

30% actual 435,000
405000
 DM used (s 1,170,000 under 30,000
DL 1,350,000
FOH - appli 405000
TMC 2,925,000
WIP, beg. 825,000
WIP, end. 660,000
COGM 3,090,000

75. DA

DM used 390,000 Factory Overhead

DL 300,000 actual 480,000
FOH - applied 450000
TMC 1,140,000
WIP, beg. (60k + 30k + 45k) 135,000 under 30,000
WIP, end. (42k + 27k + (27k*150%)) 109500
COGM 1,165,500

76. D

Job 101 Job 102 Job 103

35,000 29,000 58,000
33,000 30,000 42,000
27500 25000 35000
95,500 + 84,000 + 135,000 =

77. D

COGS 5,760,000 0.833333333333333

WIP 432,000
FG 720,000
6,912,000

COGS 5,760,000
Under-applied 300000
6,060,000

78. CADAAB

WIP 15,000
FOH 9,000
Materials 24,000
Based on the 2nd transaction

TMC (15k + 18k + 31k) 64000

WIP, beg. 11,000
Cost of goods put into process 75,000
 FG 62,000
WIP 62,000
Based on the 7th transaction

Direct Labor 18,000

Indirect Labor 8,000
Based on the 4th transaction

COGM 62,000
FG, beg. 18,000
FG, end 15,000
COGS 65,000
Under-applied FOH 7,000
Actual COGS 72,000

FOH - applied 31,000

Under-applied FOH 7,000
Actual FOH 38,000

79. C

Total Cost (74k + 444k + 296k + 236.8k) 1050800

COGM 888,000
162,800
DL 37,000
FOH (37k/80%) 29600
DM 96,200

80. B

1+1=2

81. B

DM used 13,750
DL (38.5*82 3176.25
FOH (99*33 3267
20193.25

82. B

COGM 1,440,000
WIP, end. 84,000
1,524,000
 WIP, beg. 60,000
DM 386,800
DL 804,000
FOH 273,200

83. B

Unadjusted COGS 10,200,000

Under-applied FOH 260000
Actual COGS 10,460,000

Sales 18,000,000
COGS 10,460,000
7,540,000
Period costs 4,500,000
Net income before tax 3,040,000
 102,000
456,000
86,400
471,600

Factory Overhead
399600 419,520

19,920

Factory Overhead
405,000 applied
Factory Overhead
450,000 applied

314,500
 CHAPTER 8

1. B
2. D
3. D
4. A
5. C
6. B
7. D
8. A
9. CA
Units Unit Cost Total Cost
40500 320 12960000
450 60 27,000
40050 322.9213 12,933,000
108,000
40050 325.618 13,041,000

40500 320 12960000