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    Chapter 1-Test Material 3

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    Marcus Monocay
    1. The document provides information on direct materials, direct labor, manufacturing overhead, work in process, finished goods, and cost of goods sold calculations for multiple companies. 2. It includes prime cost calculations, manufacturing costs, conversion costs, and calculations to determine direct labor and manufacturing overhead costs. 3. The various sections show accounting entries and calculations for raw materials, work in process, finished goods, cost of goods manufactured, cost of goods sold, and comparisons of actual to applied overhead costs.

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    Chapter 1-Test Material 3

    Uploaded by

    Marcus Monocay
    176 views9 pages
    1. The document provides information on direct materials, direct labor, manufacturing overhead, work in process, finished goods, and cost of goods sold calculations for multiple companies. 2. It includes prime cost calculations, manufacturing costs, conversion costs, and calculations to determine direct labor and manufacturing overhead costs. 3. The various sections show accounting entries and calculations for raw materials, work in process, finished goods, cost of goods manufactured, cost of goods sold, and comparisons of actual to applied overhead costs.

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    1. The document provides information on direct materials, direct labor, manufacturing overhead, work in process, finished goods, and cost of goods sold calculations for multiple companies. 2. It includes prime cost calculations, manufacturing costs, conversion costs, and calculations to determine direct labor and manufacturing overhead costs. 3. The various sections show accounting entries and calculations for raw materials, work in process, finished goods, cost of goods manufactured, cost of goods sold, and comparisons of actual to applied overhead costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    176 views9 pages

    Chapter 1-Test Material 3

    Uploaded by

    Marcus Monocay
    1. The document provides information on direct materials, direct labor, manufacturing overhead, work in process, finished goods, and cost of goods sold calculations for multiple companies. 2. It includes prime cost calculations, manufacturing costs, conversion costs, and calculations to determine direct labor and manufacturing overhead costs. 3. The various sections show accounting entries and calculations for raw materials, work in process, finished goods, cost of goods manufactured, cost of goods sold, and comparisons of actual to applied overhead costs.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 9

    CHAPTER 1-TEST MATERIAL 3

    Prime Cost= Direct Materials + Direct Labor

    1
    Direct Materials,Beginning ₱174,000.00
    Add: Purchases 1,500,000.00
    Direct Materials Available for use 1,674,000.00
    Less:Direct Materials, Ending (132,000.00)
    Direct Materials 1,542,000

    Direct Labor
    Direct labor hours worked ₱22,000.00
    Pay per hour x 45 990,000.00
    Prime Cost 2,532,000

    Overtime Pay Hours ₱1,000.00


    Pay (P45/2, time and half) x 22.5 ₱22,500.00

    Factory Supplies 60,000.00


    Supervision Fees 175,000.00
    Factory Supplies Used 300,000.00
    Factory Overhead ₱ 557,500.00

    Raw Material Used ₱326,000.00


    Raw Materials Ending 85,000.00
    Raw Materials Beginning (75,000.00)
    Cost of Raw Materials purchased ₱ 336,000.00

    Direct Material ₱326,000.00


    Direct Labor 225,000
    Manufacturing Overhead ₱225,000.00
    x 60% 135,000.00
    Factory Cost of the Period ₱ 686,000.00

    5
    Cost of Goods Sold
    Finished Goods, ending ( 2,040,000-320,000) ₱ 6,900,000.00
    Finished Goods, beginning (2,040,000.00)
    Cost of Goods Manufactured 6,850,000.00
    Work in Process, Ending (800,000x90%) 720,000.00
    Work in Process, Beginning (800,000.00)
    Total Manufacturing Cost ₱ 6,500,000.00

    Direct Materials Purchased ₱ 3,200,000.00


    Less: Increase in Direct Materials (180,000.00)
    Direct Materials Cost ₱ 3,020,000.00

    Total Manufacturing Costs ₱ 6,500,000.00


    Cost of Materials (3,020,000.00)
    Conversion Cost ₱ 3,480,000.00

    Conversion Costs ₱ 3,480,000.00


    Divide: Rate of Factory Overhead Applied 160%
    Direct Labor Cost ₱ 2,175,000.00

    Direct Labor Cost ₱ 2,175,000.00


    Multiply: Rate of Factory Overhead applied 60%
    Factory Overhead Cost ₱ 1,305,000.00

    Prime Costs 6,750,000


    Conversion costs 4,500,000
    divide by 150% / 150%
    Direct Labor (3,000,000)
    Raw Materials Used 3,750,000
    Decrease in Raw Materials (250,000)
    Raw Materials Purchased P 3,500,000

    7 and 8
    Johnson Company
    Statement of Cost of Goods Manufactured and Sold
    July 31, 20xx

    Direct Materials Used:


    Raw Materials, beg P 4,400,000.00
    ADD: Purchases 9,000,000.00
    Raw Materials Available ₱ 9,000,000.00
    LESS: Raw Material, End (2,800,000.00)
    Indirect Materials (850,000.00)
    Direct Materials Used: ₱ 9,750,000.00
    Direct Labor 6,500,000.00
    Factory Overhead:
    Indirect materials ₱ 850,000.00
    Indirect labor 560,000.00
    Supervision fee 1,250,000.00
    Depreciation 900,000.00
    Rent 720,000.00
    Utilities 360,000.00
    Factory Overhead: ₱ 4,640,000.00
    TOTAL MANUFACTURING COST ₱ 20,890,000.00
    ADD: Work in Process, beg 3,000,000.00
    Total Costs of work put into process ₱ 23,890,000.00
    LESS: Work in Process, end (2,400,000.00)
    Cost of Goods Manufactured ₱ 21,490,000.00

    Cost of Goods Manufactured ₱ 21,490,000.00


    ADD: Finished Goods, beg 2,400,000.00
    Goods Availbale for Sale ₱ 2,400,000.00
    LESS: Finished Goods, end (2,950,000.00)
    Cost of Goods Sold ₱ 20,940,000.00
    divide by 75% /75%
    TOTAL SALES P 27,920,000

    9
    Cost of Goods Manufactured
    Add: Finished Goods, Jan 1 ₱ 17,400,000.00
    Cost of Goods Available for Sale 1,500,000.00
    ₱ 18,900,000.00

    Less: Cost of Sales


    Finished Goods, End of 1st Quarter (16,800,000.00)
    ₱ 2,100,000.00
    Finished Goods, Jan 1
    Less: Finished Goods, End ₱ 1,500,000.00
    Change in finished goods inventory (2,100,000.00)
    ₱ 600,000.00
    10
    Raw Materials, beg
    Add: Net Purchase ₱ 84,000.00
    Raw Materials Available 46,000.00
    Less: Raw Materials, End 130,000.00
    Direct Materials Used (50,000.00)
    Direct Labor (P63,000/.75) ₱ 80,000.00
    Factory Overhead 84,000.00
    Total Manufacturing Cost 63,000.00
    Add: Work in Process, beg ₱ 227,000.00
    Total Cost of Work Put into Process 80,000.00
    Less: Work in Process, End ₱ 307,000.00
    Cost of Goods Manufactured (95,000.00)
    Add: Finished Goods, beg ₱ 212,000.00
    Cost of Goods Available for Sale 60,000.00
    Less: Finished Goods, End ₱ 272,000.00
    Cost of Goods Sold (78,000.00)
    ₱ 194,000.00

    11

    Beginning:
    Materials (50,000+30,000) ₱ 80,000.00
    Labor (80,000+60,000) 140,000.00
    Overhead (120,000+90,000) 210,000.00
    Cost added:
    Materials (80,000+50,000) ₱ 130,000.00
    Labor (100,000+80,000) ₱ 180,000.00
    Overhead (150,000+120,000) ₱ 270,000.00
    Finished goods, end ₱ 1,010,000.00

    12

    Applied overhead
    Actual Overhead ₱ 435,000.00
    Over applied (420,000.00)
    ₱ 15,000.00

    13
    Raw Materials, beginning ₱ 85,000.00
    Purchases 970,000.00
    LESS: Raw Materials, End (120,000.00)
    Raw Materials used ₱ 935,000.00
    Direct Labor (48,000 x 20) 960,000.00
    Overhead 576,000.00
    Total Manufacturing Cost ₱ 2,471,000.00
    Work in Process, beginning 90,000.00
    LESS: Work in Process, end (271,000.00)
    Cost of Goods Manufactured ₱ 2,290,000.00
    Finished Goods, beginning 180,000.00
    LESS: Cost of Goods Sold ( 1,050,000/60%) (1,750,000.00)
    Finished Goods, End ₱ 720,000.00

    14

    P 1050000/60% = P 1750000 x 160% ₱ 2,800,000.00

    15

    d. Increase in RM by P 7,500

    Raw Materials, beginning ( 47,500-37,500) ₱ 10,000.00


    Raw Materials Puurchased 37,500.00
    Raw Materials Available for use ₱ 47,500.00
    LESS: Raw Materials issued to production (30,000.00)
    Raw Materials, end ₱ 17,500.00

    Raw Materials, end ₱ 17,500.00


    Raw Materials, beginning (10,000.00)
    Increase in Raw Material ₱ 7,500.00
    Direct Labor ₱990,000.00
    Factory Overhead 557,500.00
    Conversion Cost ₱ 1,547,500.00
    Conversion Cost ₱ 7,920,000.00
    Multiply: Direct Labor rate over Overhead rate *38.5/69.3
    Direct Labor ₱ 4,400,000.00

    Direct Materials (P13,680,000-4,400,000) ₱ 9,280,000.00


    Direct Labor 4,400,000.00
    Factory Overhead (P7,920,000-4,400,000) 3,520,000.00
    Total Manufacturing Cost ₱ 17,200,000.00
    Add: Work in Process, Jan 1 1,200,000.00
    Total Cost of Work Put into Process ₱ 18,400,000.00
    Less: Cost of Goods Manufactured 17,400,000.00
    Work in Process, End ₱ 1,000,000.00

    Work in Process, Jan 1 ₱ 1,200,000.00


    Less: Work in Process, End 1,000,000.00
    Change in Work in Process ₱ 200,000.00
    Raw Materials, beginning ₱ 85,000.00
    Purchases 970,000.00
    LESS: Raw Materials, End (120,000.00)
    Raw Materials used ₱ 935,000.00
    Direct Labor (48,000 x 20) 960,000.00
    Overhead 576,000.00
    Total Manufacturing Cost ₱ 2,471,000.00
    Work in Process, beginning 90,000.00
    LESS: Work in Process, end (271,000.00)
    Cost of Goods Manufactured ₱ 2,290,000.00
    Finished Goods, beginning 180,000.00
    LESS: Cost of Goods Sold ( 1,050,000*60%/40%) (1,575,000.00)
    Finished Goods, End ₱ 895,000.00

    1,050,000*60%/40%= Cost of Goods Sold ₱ 1,575,000.00


    multiply by *140%
    Sales Revenue ₱ 2,625,000.00

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