Intro To Cost Acctg Part 2
Intro To Cost Acctg Part 2
Intro To Cost Acctg Part 2
• Labor Incurrence: (Factory Labor: Direct and Indirect Labor, Sales and admin. Salaries):
Payroll ...............................................................................xxx
Withholding tax payable……………………………………… xxx
SSS Premiums payable……………………………………….. xxx
PhilHealth Premiums payable………………………………. xxx
Accrued payroll…………………………………………………..
• Labor Distribution/Labor applied to production:
• Incurrence of FOH:
Beginning Ending
Finished Goods 54,000 72,000
Work in process 18,000 12,000
PROBLEM 2
“Hometown Cha Cha Cha” Inc. showed a Cost of Goods Sold (COGS) of P 4,320,000 in the
statement of comprehensive income after the first year of operations:
Finished goods at year-end amounted to 20% of the cost of goods manufactured (COGM).
PROBLEM 3
“Reply 1988” Company inventories provided the following information below:
3. As to controllability
a. Controllable cost - these are costs that can be modified by a certain
individual inan organization.
b. Non-controllable costs - these are costs that cannot be modified by
a certainindividual in an organization.
5. As to management discretion
a. Committed cost – these are costs that a company is already bound to
incur forcertain period of time.
b. Discretionary cost – these are costs that a company can still opt not to incur.