1
CHAPTER 16 Answers to Multiple Choice –Theoretical 1. 2. 3. ". $.
a b a a
6. 7. !. #. 1%.
c c a a C
&olutions to Multiple Choice – Co'putational 1.
b
Materials and In Process Inventory (MIP), June 1 Materials received Materials and In Process Inventory (MIP), June 30 Materials us use to to be be b ba ac()lushe to to )i )inishe *o *oos 2.
a
Raw materials purcased Raw materials used ,alance o) M-P+ en 3.
".
$.
P 10 1 0,000 205,000 ( 12,500) P2%2+$%%
P!!0,000 (!50,000) P 3%+%%%
c
MIP inventory, "e#innin# Raw materials purcased MIP inventory, endin# Materials to be bac()lushe to )inishe *oos
P 3!,$00 %!0,000 ( &1,'00) P676+!%%
Conersion ion costs to be bac()lus lushe to )inis inish he *oos
P
$+3% +3%%
c
Raw materials purcased Materials used (21,000 P25) MIP inventory, endin#
P550,000 (525,000) P 25,000
Raw materials used *onversion costs (21,000 P20) +inised #oods *ost o #oods sold (20,000 P&5) /inishe *oos inentor0+ enin*
P525,000 &20,000 '&5,000 ('00,000) P "$+%%%
a
Raw materials purcased Materials standard cost (1 ( 1'2,000 P2%) MIP Inventory, endin#
P5,300,000 ( &,''2,000) P 30!,000
2 Cost o) *oos sol 1#2+%%% P"14 6.
P7+!72+%%%
Materials Materials in -pril 1 MIP inventory inventory "alance "alance (31,000 (31,000 . P1,&00) P1,&00) P 2',%00 2',%00 Materials received durin# -pril 3%$,000 Materials in -pril 30 MIP, MIP, per pysical count count (P33,000.P1,!00) (P33,000.P1,!00) ( 31,200) A'ount to be bac()lushe P 36$+"%% 7.
c
Materials in May 1 MIP "alance ( P1 P12,300 . P1,300) Materials received durin# May Materials in May 31 MIP "alance (P12,100 . P2,100) A'ount to be bac()luse !.
P1,300,000 P200,000 ''5,000
1,1'5,000 P 1%$+%%%
c
Materials used -pplied conversion costs Cost o) *oos sol 1%.
11,000 2&%,000 ( 10,000) P 2"7+%%%
c
-pplied conversion costs -ctual conversion costs incurred /irect la"or +actory overead 5erapplie conersion costs #.
P
P 300,000 1,300,000 P1+6%%+%%%
a
Materials "aclused rom +inised oods to *ost o oods old Materials in June 1, MIP "alance (P2',250 . P3,000) P 2%,250 Materials received 5%2,500 Materials in June 30, MIP "alance (P32,000 . P&,500) ( 2$, 2$,500) Materials "aclused to +inised oods rom MIP 5%1,250 Mat Materia erials ls in June June 1, +ini +inis sed ed ood oodss (P3 (P30,000 ,000 . P10 P10,000 ,000)) 20,0 20,00 00 Mat Materia erials ls in June June 30, 30, +inis inis ed ood oodss (P2% (P2%,2 ,25 50 . P!,$ P!,$50 50)) ( 1$,5 1$,500 00)) Materials "aclused to *ost o oods sold P 5%3,$50 -dustment o conversion cost to *ost o oods old In MIP (rom P3,000 to P&,500) P1,500 In + (rom 10,000 to P!,$50) 1,250 ( 2,$50) Cost o) oos &ol+ une 3% P $61+%%% 11.
a
Materials in MIP, June 30 Materials in MIP, June 1 Materials used Raw 'aterials purchase urin* une
P 12,500 (10,000) 202,500 P 2%$+%%%
3
&olutions to Proble's
Proble' 1681
(a )
(")
(c )
(d)
Materials and in Process inventory (MIP) -ccounts paya"le 4o record materials purcased
&&0,000
*onversion costs 6arious accounts 4o record conversion costs incurred
211,000
+inised #oods inventory Materials and in Process inventory (MIP) -pplied conversion costs 4o record cost o inised #oods
%25,000
*ost o #oods sold +inised #oods inventory 4o record cost o #oods sold
5'5,000
&&0,000
211,000
&25,000 200,000
5'5,000
Proble' 1682 (a )
(")
(c )
(d)
Materials and in Process inventory (MIP) -ccounts paya"le 4o record materials purcased *onversion costs 6arious accounts 4o record actual conversion costs incurred
2,$5&,000 2,$5&,000
$23,%00 $23,000
+inised #oods inventory (2%,!00 P130) MIP inventory (2%,!00 P102) -pplied conversion costs (2%,!00 P2!) 4o record cost o inised #oods
3,&!&,000
*ost o #oods sold (2%,500 P130) +inised #oods
3,&32,000
2,$33,%00 $50,&00
3,&!2,000
&
Proble' 1683
(a )
(")
(c )
(d)
*onversion costs 6arious accounts 4o record actual conversion costs incurred
$23,%00
+inised #oods inventory -ccounts paya"le -pplied conversion costs 4o record cost o inised #oods
&,23&,&00
*ost o #oods sold +inised #oods 4o record cost o inised #oods
3,&32,000
-pplied conversion costs *onversion costs *ost o #oods sold 4o record disposition o under7over applied conversion costs
$23,%00
3,&!&,000 $50,&00
3,&32,000
$50,&00 $23,%00 2%,!00
Proble' 168"
(a )
(")
(c )
(d)
Materials and In Process Inventory -ccounts paya"le 4o record materials purcased
550,000
*onversion costs 6arious accounts 4o record actual conversion costs incurred
&&0,000
+inised #oods inventory (21,000 P&5) MIP inventory (21,000 P25) -pplied conversion costs (21,000 P20) 4o record cost o inised #oods
'&5,000
*ost o #oods sold (20,000 P&5) +inised #oods inventory 4o record cost o #oods sold
'00,000
550,000
&&0,000
525,000 &20,000
'00,000
5
Proble' 168$
(a )
(")
(c )
(d)
Materials inventory -ccounts paya"le 4o record materials purcased
550,000
*onversion costs 6arious accounts account s 4o record actual conversion costs incurred
&&0,000
*ost o #oods sold Materials inventory -pplied conversion costs
'00,000
-pplied conversion costs *ost o #oods sold *onversion costs 4o closed under or over8applied conversion costs
&00,000 &0,000
550,000
&&0,000
500,000 &00,000
&&0,000
Proble' 1686
(a )
9o en entry o or ma materials ials purcased
(")
*onversion costs 6arious accounts
&&0,000
+inised #oods in inventory -ccounts paya"le -pplied conversion costs 4o record cost o inised #oods
'&5,000
*ost o #oods sold +inised #oods inventory 4o record cost o #oods sold
'00,000
-pplied conversion costs *ost o #oods sold *onversion costs 4o dispose under7over8applied under7over8applied conversion costs
&20,000 20,000
(c )
(d)
(e )
&&0,000
525,000 &20,000
'00,000
&&0,000
%
Proble' 1687
14
a4
:;uivalent :;uivalent Production Production <5,000 <5,000 = (&0 50>) ? 5,000 P250 P250,5 ,525 25 @ 5,020 5,020 ?
P&' P&''0 '05 5 per per unit unit
b4
P250,000 @ 5, 5,000 ?
P50
c4
Anits started (5,000 = &0 8 35) ? 5,005 P250 P250,0 ,000 00 @ 5,005 5,005 ?
? ? ?
per unit
P&' P&''5 '50 0 per per unit unit
24
&0 50 P&''05 &0 50 P50 &0 50 P&''50
P''0 P1,000 P'''
34
*onsiderin# tat te results o Re;uirement (2) were witin two pesos o eac oter, ten metod (") would "e recommended "ecause o its simplicity
