ASSIGNMENT IN COSTACC

GROUP 2:
 LEAÑO, Danielle Alessandra C. (Leader)
 SEPULVEDA, Justin Andrew S. (Assistant Leader)
 TARATINGAN, Czarina Jaya A.
 SOBERANO, Christopher Matthew R.
 MAÑEBO, Claire Keith B.

PROBLEM 1: Alexis Company

# Journal Entries Debit Credit
1 Materials Php 28,000
Accounts Payable . 28,000
2 Work in Process 22,000
Factory Overhead Control 3,000
Materials 25,000
3 Materials 800
Work in Process 500
Factory Overhead Control 300
4 Accounts Payable 1,000
Materials 1,000
5 Payroll 39,000
Withholding Taxes Payable 3,025
SSS Premium Payable 1,600
Phil Health Contributions Payable 375
Pag-Ibig Funds Contributions Payable 1,200
Accrued Payroll 32,800
Cash 32,800
6 Work in Process 33,400
Factory Overhead Control 5,600
Payroll 39,000
7 Factory Overhead Control 3,575
SSS Premium Payable 2,000
Phil Health Contributions Payable 375

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 Pag Ibig Contributions Payable 1,200
8 Factory Overhead Control 15,000
Accumulated Depreciation 3,000
Prepaid Insurance 950
Accounts Payable 11,050

9 Work in Process 26,720

Factory Overhead Applied 26,720
1 Finished Goods 72,220
0 Work in Process 72,220
Job 401: 31,720
Job 402: 40,500
11 Accounts Receivable 44,408
Sales (31,720 x 140%) 44,408
Cost of Goods Sold 31,720
Finished Goods 31,720
1 Cash 35,000
2 Accounts Receivable 35,000

JOB 401
Direct Materials Direct Labor Factory Overhead
3,000 2,500 2,000
5,500 10,400 8,320
8,500 12,900 10,320

JOB 402
Direct Materials Direct Labor Factory Overhead
5,600 3,000 2,400
7,000 12,500 10,000
12,600 15,500 12,400

JOB 403
Direct Materials Direct Labor Factory Overhead
9,500 10,500 8,400
(500)

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 COST OF GOODS SOLD STATEMENT
Direct Materials Used
Materials, August 1 22,000
Purchases 28,000
Less: Purchase Returns (1,000) 27,000
Total Available for Use 49,000
Less: Materials, August 31 24,800
Indirect Materials 2,700 (27,500)
21,500
Direct Labor 33,400
Factory Overhead 26,720
Total Manufacturing Costs 81,620
Work in Process, August 1 18,500
Cost of Goods put into Process 100,120
Less: Work in Process, August 31 (27,900)
Cost of Goods Manufactured 72,220
Finished Goods, August 1 25,000
Total Goods Available for Sale 97,220
Less: Finished Goods, August 31 (65,500)
Cost of Goods Sold - Normal 31,720
Add: Under Applied Factory Overhead 155
Cost of Goods Sold Php.31,875

PROBLEM 2: Golden Shower Company

# Journal Entries Debit Credit
a Materials Php 229,040
Accounts Payable . 229,040
X (20,000 x 5.20) = 104,000
Y (24,000 x 3.75) = 90,000
Indirect Materials: 35,040
b Payroll 220,000
Withholding Taxes Payable 31,000
SSS Premium Payable 7,000
Phil Health Contributions Payable 440
Pag Ibig Funds Payable 6,600
Accrued Payroll 174,960

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 Accrued Payroll 174,960
Cash 174,960
c Work in Process 156,000
Factory Overhead Control 24,000
Marketing and Admin Expense Control 40,000
Payroll 220,000

Factory Overhead Control 14,760

Marketing and Admin Expense Control 3,280
SSS Premium Payable 11,000
Phil Health Payable 440
Pag Ibig Funds Contribution Payable 6,600

SSS Phil Health Pag Ibig Total

(5%) (0.20%) (3%)
FOC (180,000) 9,000 360 5,400 14,760
M & A Expense 2,000 80 1,200 3,280
Control
Total 11,000 440 6,600 18,040

d Work in Process Php 216,350

Factory Overhead Control . 15,040
Materials 231,390
JOB 101 JOB 102
X 4,000 x 5.00 = 20,000 Y 8,000 x 3.00 = 24,000
X 16,000 x 5.20 = 83,200 Y 16,000 x 3.75 = 60,000
103,200 84,000
JOB 103
X 2,000 x 5.20 = 10,400
Y 5,000 x 3.75 = 18,750
29,150
e Work in Process 85,500
Factory Overhead Applied 85,500

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 Job 101 = 10,000 x 2.25 = 22,500
Job 102 = 16,000 x 2.25 = 36,000
Job 103 = 12,000 x 2.25 = 27,000
f Accounts Receivable 510,000
Sales 510,000
Cost of Goods Sold 380,700
Work in Process 380,700
g Cash 494,000
Sales Discount 26,000
Accounts Receivable 520,000
h Marketing and Admin Expense Control 30,000
Factory Overhead Control 25,600
Cash 51,600
Accumulated Depreciation 4,000
i Accounts Payable 170,000
Cash 170,000
j Factory Overhead Applied 85,500
Cost of Goods Sold 6,100
Factory Overhead Control 79,400

JOB 101
Direct Materials Direct Labor Factory Overhead
5,000 4,000 2,000
103,200 40,000 22,500
108,200 44,000 24,500

JOB 102
Direct Materials Direct Labor Factory Overhead
1,200 2,000 800
84,000 80,000 36,000
85,200 82,000 36,800

JOB 103
Direct Materials Direct Labor Factory Overhead
21,950 36,000 27,000

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 STOCKCARDS: MATERIAL X
Received Issued Balance
4,000 @ 5.00 = 20,000
20,000 @ 5.20 = 104,000 4,000 @ 5.00 = 20,000
20,000 @ 5/20 = 104,000
4,000 @ 5.00 = 20,000
18,000 @ 5.20 = 93,000 2,000 @ 5.20 = 10,400

STOCKCARDS: MATERIAL Y
Received Issued Balance
8,000 @ 3.00 = 24,000
24,000 @ 3.75 = 90,000 8,000 @ 3.00 = 24,000
24,000 @ 3.75 = 90,000
8,000 @ 3.00 = 24,000
21,000 @ 3.75 = 78,750 3,000 @ 3.75 = 11,250

PROBLEM 3: J.A.N Company

# Journal Entries Debit Credit
a Work in Process Php 10,600
Factory Overhead Control . 800
Materials 11,400
b Work in Process 11,700
Factory Overhead Control 1,200
Payroll 12,900
c Finished Goods (2,500 + 2,000 + 2,320) 6,820
Work in Process 6,820

PROBLEM 4: Hercules Company

1 Job 101 5,200
Job 102 4,700

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 Work in Process, end of April 9,900

Job 102 (4,700 + 3,800) 8,500

Job 104 5,800
Job 105 5,200
Work in Process – End of May 19,500

Job 105 (5,200 + 3,800) WP – End of June 9,000

2 Finished Goods – End of April (Job 103) 1,200

Finished Goods – End of May (Job 101) 10,600
Finished Goods – End of June (Job 102 + Job 104) 20,500
10,500 + 10,000

3 May (1,200 x 0.25) 300

June (10,600 x 0.25) 2,650
July (20,500 x 0.25) 5,125

PROBLEM 5: Star Wars Corporation

# Journal Entries Debit Credit
1 Work in Process Php 60,000
Materials . 60,000
2 Work in Process 120,000

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 Payroll 120,000
3 Work in Process 75,000
FO Applied 75,000
4 Finished Goods 255,000
Work in Process 255,000
5 Accounts Receivable 340,000
Sales 340,000
Cost of Goods Sold 255,000
Finished Goods 255,000

Job 110 Job 220 Job 330 Total

Selling Price 100,000 140,000 100,000 340,000
Direct Materials 15,000 25,000 20,000 60,000
Direct Labor 40,000 50,000 30,000 120,000
Factory 25,000 30,000 20,000 75,000
Overhead
Total Cost 80,000 105,000 70,000 255,000
Gross Profit 20,000 35,000 30,000 85,000
Selling Price 80,000/80% 105,000/75% 70,000/70% ----------

PROBLEM 6: Star Wars Corporation

# Journal Entries Debit Credit
1 Materials Php 145,000
Cash/Accounts Payable . 145,000
2 Work in Process 125,000
Materials 125,000
3 Payroll 400,000
Cash/Payroll Payable 400,000
4 Work in Process 400,000
Payroll 400,000
5 Work in Process 320,000
Applied Factory Overhead 320,000

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6 Factory Overhead Control 330,000
Cash/Accounts Payable 330,000
7 Finished Goods 820,000
Work in Process 820,000
8 Cash/Accounts Receivable xxxx
Sales xxxx
9 Cost of Goods Sold 850,000
Finished Goods 850,000

COST OF GOODS SOLD STATEMENT

Raw Materials, January 1 Php 60,000
Net Purchases 145,000
Raw Materials Available for Use 205,000
Raw Materials, December 31 (80,000)
Total Raw Materials Used 125,000
Direct Labor 400,000
Factory Overhead 320,000
Total Manufacturing Cost 845,000
Work in Process, January 1, 2020 85,000
Total Work Placed in Production 930,000
Work in Process, December 31 (110,000)
Total Cost of Goods Manufactured 820,000
Finished Goods, January 1 120,000
Goods Available for Sale 940,000
Finished Goods, December 31 (90,000)
Total 850,000
Under and Overapplied Factory Overhead 10,000
Cost of Goods Sold Php. 860,000

CLOSING ENTRIES
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# Journal Entries Debit Credit
1 Under and Overapplied Factory Overhead Php 10,000
0 Applied Factory Overhead . 320,000
Factory Overhead Control 330,000
11 Cost of Goods Sold 10,000
Under and Overapplied Factory 10,000
Overhead

MULTIPLE CHOICE
D 1. Under the job-cost system, purchases of direct materials are debited to:
a. Purchases
b. Work in Process Control
c. Factory Overhead Control
d. None of the Above

B 2. Under the job-cost system, issues of direct materials are debited to:
a. Factory Overhead Control
b. Work in Process Control
c. Materials Control
d. None of the Above

B 3. In job-order costing, what journal entry should be made for the return to the stockroom of
direct materials previously issued to production for use on a particular job?
a. debit Materials and credit Factory Overhead
b. debit Materials and credit Work in Process
c. debit Purchase Returns and credit Work in Process
d. debit Work in Process and credit Materials

D 4. Under a job-order costing system, the peso amount of the entry involved in the transfer of
inventory from work in process to finished goods is the sum of the costs charged to all jobs:

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 a. started in process during the period
b. in process during the period
c. completed and sold during the period
d. completed during the period

D 5. In a job-order costing system, indirect labor used should be debited to:

a. Payroll Liability
b. Work in Process Control
c. Finished Goods Control
d. Factory Overhead Control

D 6. Which of the following is the basic document that is used to accumulate the cost of each
order in job order costing:
a. Invoice
b. Purchase Order
c. Requisition Sheet
d. Job Cost Sheet

A 7. What is the best cost accumulation procedure to use when many batches, each differing as
to product specification, are produced?
a. Job Order
b. Process
c. Actual
d. Standard

C 8. The most common treatment of under or overapplied overhead is to close it to:

a. Work in Process
b. Retained Earnings
c. Cost of Goods Sold
d. Finished Goods

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C 9. It’s two o’ clock in the morning and you’ve been studying job-order costing for the past
three hours. You drift off to sleep and in your first dream you visit JOB-ORDER COSTING
LAND. You are a direct labor peso and are traveling through a giant ledger. By time you finish
your journey, which accounts will you travel through and in what order?
a. Work in process, Cost of goods manufactured, Finished goods and Cost of goods sold
b. Direct labor, Work in process, Finished goods and Cost of goods sold
c. Work in process, Finished goods and Cost of goods sold
d. Manufacturing overhead, Work in process, Cost of goods manufactured and Finished
goods
e. Direct labor, Work in process, Finished goods, Cost of goods manufactured and Cost of
goods sold

B 10. Which of the following production operations would be most likely to employ a job-order
system of cost accounting:
a. Toy Manufacturing
b. Ship Building
c. Crude Oil Refilling
d. Candy Manufacturing

D 11. Someone told Marco de Santos, President of D’ Santos Company, that under-or
overapplied manufacturing overhead can be allocated to three accounts. What are those three
accounts?
a. Raw materials, Manufacturing overhead and Direct labor
b. Raw materials, Finished goods and Cost of goods sold
c. Cost of goods sold, Work in process and Finished goods
d. Cost of goods sold, Work in process and Raw materials

D 12. Which of the following statements are False?

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 I.A manufacturing company can use direct labor hours as overhead base in one and machine
hours as an overhead base in another.
II.A debit balance in the work in process account indicates that not all goods completed during
the period were sold.
III.The predetermined OH rate is computed by dividing estimated units in the overhead base by
budgeted or estimated manufacturing overhead costs
a. I only
b. II only
c. I and II only
d. II and III only
C 13. What accounts would be debited and credited when the direct materials are purchased on
account?
DEBITED CREDITED
a. Work in process Direct Materials
b. Direct materials Work in Process
c. Materials Accounts payable
d. Work in Process Accounts payable

B 14. What accounts would be debited and credited when the wages for indirect laborers are
recorded?
DEBITED CREDITED
a. Factory Overhead Wages Payable
b. Factory Overhead Payroll
c. Payroll Accrued Payroll
d. Work in Process Payroll

C 15. Which of the following statements pertaining to job-order costing are TRUE?
I.The issuance of indirect materials from the storeroom is recorded on job-cost sheets.
II.Overapplied factory overhead can be properly disposed of with a debit to cost of goods sold
and a credit to factory overhead.

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III.Both an overstated forecast of overhead and an understated forecast of units of the overhead
base can cause overhead to be overapplied.
a. I only
b. II only
c. III only
d. II and III only

A 16. A material requisition form normally does not contain which of the following?
a. Vendor’s name
b. Quantity requisitioned
c. Unit cost
d. Job number

C 17. A job order cost sheet normally does not contain which of the following?
a. Direct Materials
b. Direct Labor
c. Actual Factory Overhead
d. Applied Factory Overhead

B 18. In a job order costing system, payroll taxes deductions paid by the employer for factory
employees are normally accounted for as:
a. direct labor
b. factory overhead
c. indirect labor
d. administrative cost

B 19. Overhead applied was Php.120,000, while actual overhead was Php.124,000. Which of the
following is always true of the above?
a. Direct labor activity was overestimated
b. Overhead was under applied by Php.4,000

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 c. Overhead was over applied by Php.4,000
d. The difference must be reported as a loss

B 20. Which of the following is not a characteristic of job costing?

a. Each job is distinguishable from other jobs
b. Identical units are produced on an ongoing basis
c. It is not possible to compare actual costs with estimated costs
d. Job cost data are used for setting prices and bidding prices

C 21. Under a job order costing system, the cost of direct materials, direct labor and factory
overhead must first flow through the
a. Finished goods account
b. Cost of goods sold account
c. Work in process account
d. Cost of goods manufactured account

B 22. The unit cost of a product, under job costing, can be determined only
a. At the end of the manufacturing process
b. Upon completion of a job
c. At the end of the month
d. At the point of time

D 23. When a job is completed and all costs have been accumulated in job cost sheet, the journal
entry that should be made:
a. Finished Goods Inventory
Direct Materials
Direct Labor
Factory Overhead
b. Work in Process Inventory
Direct Materials

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 Direct Labor
Factory Overhead
c. Raw Materials Inventory
Work in Process Inventory
d. Finished Goods Inventory
Work in Process Inventory

B 24. Cost of raw materials are debited to Raw Materials Inventory when
a. the materials are ordered
b. the materials are received
c. materials are put into production
d. the bill for the materials are paid

B 25. Under an effective system of internal control, the authorization for issuing materials is
made
a. orally
b. on a prenumbered materials requisition slip
c. by the accounting department
d. by anyone

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