Problem 1. Green Piece Company manufactures wood file cabinets.

The following
information is available for June 2023:

Beginning Ending
Raw Materials Inventory 6,000 7,500
Work in Process 17,300 11,700
Inventory
Finished Goods Inventory 21,000 16,300

a. Direct labor is 9.60 per hour and overhead for the month was 9,600.
Compute total manufacturing costs for June, if there were 1500 direct
labor hours and 21,000 of raw material was purchased.
b. Direct labor is paid 9.60 per hour and overhead for the month was
9,600. What are prime costs and conversion costs, respectively if there
was 1,500 direct labor hours and 21,000 of raw material was purchased?
c. Direct labor is paid 9.60 per hour and overhead for the month was
9,600. If there were 1,500 direct labor hours and 21,000 of raw
material purchased, cost of goods manufactured is?
d. Direct labor is paid 9.60 per hour and overhead for the month was
9,600. If there were 1,500 direct labor hours and 21,000 of raw
material purchased, how much is the cost of goods sold?

Problem 2. Bato Company uses a job order costing system. During May 2023.
The following costs appeared in the Work in Process Inventory account:

Beginning balance 12,000

Direct material used 35,000

Direct labor incurred 30,000

Applied overhead 24,000

Cost of goods manufactured 92,500

Bato Company applies overhead on the basis of direct labor cost. There was
only one job left in Work in Process at the end of May which contained
2,800 of overhead.

What amount of direct material was included in this job?

Problem 3. JMO Company manufactures electric drills to the exacting

specifications of various customers. During May 2023, Job 214 for the
production of 2,200 drills was completed at the following costs per unit:

Direct materials 20

Direct Labor 16

Applied Factory Overhead (3 allowance) 24

Final inspection of Job 214 disclosed 100 defective units and 200 spoiled
units. The defective drills were reworked at total cost of 1,000, and the
spoiled drills were sold to a jobber for 3,000.
A. Due to Internal failure
1. How many units are deemed as good units?
2. How much is the original product cost?
3. How much is to be credited to WIP inventory account due to spoilage?
4. How much is to be debited to WIP inventory due to rework?
5. What would be the new unit cost of good drills produced on Job 214?
B. Due to exacting specifications
1. How many units are deemed as good units?
2. How much is the original product cost?
3. How much is to be credited to WIP inventory account due to spoilage?
4. How much is to be debited to WIP inventory due to rework?
5. What would be the new unit cost of good drills produced on Job 214?

Problem 4. Chicharap Company adds material at the start of production. The

following production information is available for June:

Beginning work in process inventory(45% complete as to conversion)

10,000 units
Started this period 120,000 units
Ending work in process inventory (80% complete as to conversion)
8,200 units

Beginning work in process inventory costs:

Material 24,500
Conversion 68,905

Current period costs:

Material 75,600
Conversion 130,053

1. How many units must be accounted for?

2. What is the total cost to account for?
3. How many units were started and completed in the period?
4. What are the equivalent units for material using the weighted
average method?
5. What are the equivalent units for material using the FIFO method?
6. What are the equivalent units for conversion using the weighted
average method?
7. What are the equivalent units for conversion using the FIFO method?
8. What is the material cost per equivalent using the weighted average
method?
9. What is the conversion cost per equivalent unit using the weighted
average method?
10. What is the cost of units completed using the weighted average
method?
11. What is the conversion cost per equivalent unit using the FIFO
method?
12. What is the cost of all units transferred out using the FIFO
Method?
Problem 5. The following Statements of Financial Position were
prepaared for Bdyow and YunYun Bank Companies on January 1, 2023
just before they entered into business combination:

Bdyow YunYun
Book Fair Book Fair
Value Value Value Value
(in thousands)
Cash and
Receivables 450 500 225 250
Inventory 900 1000 150 250
Building and
Equipment 1687.5 1500 450 525
Accounts Payable 225 200 60 45
Bonds Payable 675 450 75 105
Common Stocks
20 par value 1200
10 par value 300
Additional Paid
in Capital 225 75
Retained Earnings 712.5 315

Bdyow acquired Yunyun by issuing 15,000 shares of common stocks and

paying cash amounting to 450,000. In addition, the following were
incurred: legal fees, cost of SEC registration, cost of issuing
stock certificates and general administrative costs were incurred
and paid costing Bdyow of 37,500;37,500;15,000 and 22,500
respectively.

A. If the market stock price of Bdyow and Yunyun are 25 and 14,
respectively at the time of acquisition:
1. How much is the goodwill or income from acquisition?
2. How much is the combined common stock after acquisition?
3. How much is the combined APIC after acquisition?
4. How much is the combine RE after acquisition?
5. How much is the combined Liabilities after acquisition?
6. How much is the combined assets after acquisition?
B. If the market stock price of Bdyow and Yunyun are 40 and 15,
respectively at the time of acquisition:
1. How much is the goodwill or income from acquisition?
2. How much is the combined common stock after acquisition?
3. How much is the combined APIC after acquisition?
4. How much is the combine RE after acquisition?
5. How much is the combined Liabilities after acquisition?
6. How much is the combined assets after acquisition?