1
CHAPTER 3
Multiple choices - Theoretical
1. 2. 3. 4.
d a a d
5. 6. 7. 8.
b d b a
9. 10. 11. 12.
a d b d
Multiple Choices – Computational
1.
(a)
Total material requisitions Less: Returned materials Material cost 2.
(a)
3.
(a)
Beginning balance Purchases Issued Ending inventory Unit price Cost of ending inventory 4.
(a)
5.
(a)
P36,926 477 P36,440
15,980 units 6,600 (13,050) 9,530 units x P6.80 P9,546.80
2 SOLUTIONS TO PROBLEMS
Problem 3-1 MATERIALS LEDGER CARD
W – 64
Materials Number
Date June 1 4 10 15 16 19 23 27 29 30
Ref. Bal PO310 MR41 MR49 RM48 MR58 PO351 RSO24 MR61 RM56
Reorder Point 600 units Reorder Quantity 1,200 units
RECEIVED Units Price Amount
1,300
8.00
1,300 (100)
8.00 8.00
Units
ISSUED Price
Amounts
10,400 250 1,150 (220) 120
8.00 8.00 8.00 8.00
2,000 9,200 (1,760) 960
620 (150)
8.00 8.00
4,960 (1,200)
10,400 (800)
BALANCE Units Price Amounts 560 P4,480 1,860 14,880 1,610 12,880 460 3,680 680 5,440 560 4,480 1,860 14,880 1,760 14,080 1,140 9,120 1,290 10,320
Problem 3-2 1.
MATERIALS REQUISITIONS JOURNAL
For the Month of
May
Date
Job No./Dept 25 26 Finishing 26
May 8
14 21 24
Req. No. 41 26 43 44
, 2010
Page
Work in Process ( DR 122) 26,150 49,600
FO Control (DR 501)
16,600 32,100 107,850
16,600
2 Materials (CR 121) 26,150 49,600 16,600 32,100 124,450
VOUCHERS REGISTER For the Month of May
May 4 17 26 29
No.
051 052 053 RSO 28
Page
Paid Check
Voucher Date
, 2010
Payable To
Shaft Supply Ace Corp. Handyman Handyman
Date
No.
Vouchers Payable Materials CR 201
DR 121
58,100 56,400 39,800 (3,900) 150,400
58,100 56,400 39,800 (3,900) 150,400
20
Other Accounts A/C No.
Debit
Credit
3 2.
MATERIALS
DATE May 1 31 31
EXPLANATION Balance
POST. REF
VR 20 MR2
DEBIT
CREDIT
150,400 124,450
BALANCE 155,500 305,900 181,450
DR. CR. DR DR DR
Problem 3-3, 3-4 and 3-5 MATERIALS LEDGER
Materials Number
Date Dec. 1 20
Reorder Point 6,000 units Reorder Quantity 13,000 units
Braces BR 10
Ref. Bal. PO705
Units
RECEIVED Price Amount
13,000
3.50
Units
ISSUED Price Amount
45,500
Materials Side Rail 6” RA-6 Number
Date Dec. 1 1 20
Ref. Bal. R084 R087
Units
RECEIVED Price Amount
Reorder Point 3,000 units Reorder Quantity 8,000 units
Units
300 300
ISSUED Price Amount
11.50 11.50
Materials Side Rail 8” RA-8 Number
Date Dec. 1 10 22 28
Ref. Bal. R015 R018 R019
Units
RECEIVED Price Amount
BALANCE Units Price Amount 5,485 3.50 19,197.50 18,485 3.50 64,697.50
3,450 3,450
Units 1,970 1,670 1,370
BALANCE Price Amount 11.50 22,655.00 19,205.00 15.755.00
Reorder Point 1.900 units Reorder Quantity 3,850 units
Units
250 200 300
ISSUED Price Amount
14.00 14.00 14.00
3,500 2,800 4,200
Units 2,025 1,775 1,575 1,275
BALANCE Price Amount 14.00 28,350.00 24,850.00 22,050.00 17,850.00
4
Problems 3-3, 3-4 and 3-5 (continued):
Materials Steps 4”x12” ST-12 Number
Date Dec. 1 1 6 10 20 22 27 28
Ref. Bal. R084 PO073 R085 R087 R088 RSO8 R089
Units
Reorder Point 2,500 units Reorder Quantity 6,000 units
RECEIVED Price Amount
6,000
4.50
(800)
4.50
Units
ISSUED Price Amount
150
4.50
675.00
125 150 100
4.50 4.50 4.50
562.50 675.00 450.00
150
4.50
675.00
27,000
(3,600)
Materials Steps 4”x15” ST-15 Number
Date Dec. 1 1 6 10 20 21 22 28
Ref. Bal. R084 PO073 R085 R087 RM84 R088 R089
Units
6.00
Units
ISSUED Price Amount
300
6.00
1,800
375 300 (25) 300 450
6.00 6.00 6.00 6.00 6.00
2,250 1,800 (150) 1,800 2,700
27,600
Materials Tops 6”x12” TO612 Number
Date Dec. 1 1 10 16 20 22 28
Ref. Bal. R084 R085 PO074 R087 R088 R089
Units
5,000
Ref. Bal. R086
Units
Units 1,700 1,400 6,000 5,625 5,325 5,350 5,050 4,600
BALANCE Price Amount 6.00 10,200.00 8,400.00 36,000.00 33,750.00 31,950.00 32,100.00 30,300.00 27,600.00
Reorder Point 2,400 units Reorder Quantity 5,000 units
RECEIVED Price Amount
7.50
Units
ISSUED Price Amount
150 125
7.50 7.50
1,125 937
150 100 150
7.50 7.50 7.50
1,125 750 1,125
37,500
Materials Washers W-125 Number
Date Dec. 1 1
BALANCE Price Amount 4.50 8,595.00 7,920.00 34,920.00 34,357.50 33,682.50 33,232.50 29,632.50 28,957.50
Reorder Point 2,500 units Reorder Quantity 4,600 units
RECEIVED Price Amount
4,600
Units 1,910 1,760 7,760 7,635 7,485 7,385 6,585 6,435
Units 1,440 1,290 1,165 6,165 6,015 5,915 5,765
BALANCE Price Amount 7.50 10,800.00 9,675.00 8,737.50 46,237.50 45,112.50 44,362.50 43,237.50
Reorder Point 300 boxes Reorder Quantity 940 boxes RECEIVED Price Amount
Units
25
ISSUED Price Amount
8.00
200
Units 675 650
BALANCE Price Amount 8.00 5,400 5,200
5 Problem 3-3 (continued)
2.
MATERIALS REQUISITIONS
DELIVER TO Welding Dept. CHARGE: ACCT, 122 72 JOB QUANTITY
MAT. NO.
300 150 300 150
DESCRIPTION
RA – 6 ST – 12 ST – 15 TO -612
Entered On Materials Ledger Card
Material Requisition No. DATE 12/1/2010
Side rails, 6” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”
Entered In Materials Req. Journal
(Student’s Initial)
(Student’s Initial)
Approved By:
P 11.50 4.50 6.00 7.50
Entered on Job Cost Sheet
Delivered by:
MAT. NO.
250 125 375 125
RA - 8 ST – 12 ST – 15 TO -612
Entered On Materials Ledger Card
(Student’s Initial) Approved By:
P 3,450 675 1,800 1,125 P 7,050
(Student’s Initial)
Received By:
Material Requisition No. DATE 12/10/2010
DESCRIPTION Side rails, 8” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”
Entered In Materials Req. Journal
(Student’s Initial Delivered by:
AMOUNT
Entered on Dept. Overhead Analysis Sheet
(Student’s Initial)
DELIVER TO Welding Dept. CHARGE: ACCT, 122 73 JOB QUANTITY
UNIT PRICE
084
UNIT PRICE P 14.00 4.50 6.00 7.50
Entered on Job Cost Sheet
(Student’s Initial) Received By:
085
AMOUNT P 3,500.00 562.50 2,250.00 937.50 P 7,250.00
Entered on Dept. Overhead Analysis Sheet (Student’s Inititial)
6 Problems 3-3 and 3-4 (continued)
JOB COST SHEET Customer: Description: Quantity:
Chico Supply Co. Aluminum Doors 300
MATERIALS REQ. DATE NO. AMOUNT 12/1 R084 7,050 12/10 R087 7,050
Job 72 Date Started 12/1/2010 Date Completed
DIRECT LABOR REF. DATE NO. HRS.
AMOUNT
MFG. OVERHEAD APPLIED REF. DATE NO. RATE AMOUNT
JOB COST SHEET Customer: Description: Quantity:
Apple Const. Supply Co. Aluminum Ladders 6” 250
MATERIALS REQ. DATE NO. AMOUNT 12/10 R085 7,250 12/21 RM84 (150) 12/22 R088 5,800
Job 73 Date Started 12/10/2010 Date Completed
DIRECT LABOR REF. DATE NO. HRS.
AMOUNT
MFG. OVERHEAD APPLIED REF. DATE NO. RATE AMOUNT
Problem 3-5 (continued)
JOB COST SHEET Customer: Description: Quantity:
Santol Co. Aluminum Ladders 8” 300
MATERIALS REQ. DATE NO. AMOUNT 12/28 R089 8,700
DIRECT LABOR REF. DATE NO. HRS.
Job 74 Date Started 12/28/2010 Date Completed
AMOUNT
MFG. OVERHEAD APPLIED REF. DATE NO. RATE AMOUNT
7 Problem 3-4 (continued)
RETURNED MATERIALS REPORT
CREDIT:
QUANTITY 25
ACCT. Job No.
Returned Materials Report 84 No. Date 12/21/2010 Dept.
73
MAT. NO. ST - 15
DESCRIPTION Steps, 4” x 15”
UNIT COST 6.00
AMOUNT 150.00
REASON FOR RETURN Entered on Materials Ledger Card
(Student’s Initial)
Entered on Job Cost Sheet
(Student’s Initial)
Entered on Dept. Overhead Analysis Sheet
Received by
8 Problem 3-5 (continued)
1.
MATERIALS REQUISITIONS
DELIVER TO Welding Dept. CHARGE: ACCT, 122 73 JOB QUANTITY
MAT. NO.
200 100 300 100
DESCRIPTION
RA – 8 ST – 12 ST – 15 TO -612
Entered On Materials Ledger Card
Material Requisition No. DATE 12/22/2010
Side rails, 8” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”
Entered In Materials Req. Journal
(Student’s Initial)
(Student’s Initial)
Approved By:
P 14.00 4.50 6.00 7.50
Entered on Job Cost Sheet
Delivered by:
MAT. NO.
300 150 450 150
RA - 8 ST – 12 ST – 15 TO -612
Entered On Materials Ledger Card
(Student’s Initial) Approved By:
P 2,800.00 450.00 1,800.00 750.00 P 5,800.00
(Student’s Initial)
Received By:
Material Requisition No. DATE 12/28/2010
DESCRIPTION Side rails, 8” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”
Entered In Materials Req. Journal
(Student’s Initial Delivered by:
AMOUNT
Entered on Dept. Overhead Analysis Sheet
(Student’s Initial)
DELIVER TO Welding Dept. CHARGE: ACCT, 122 74 JOB QUANTITY
UNIT PRICE
088
UNIT PRICE P 14.00 4.50 6.00 7.50
Entered on Job Cost Sheet
(Student’s Initial) Received By:
089
AMOUNT P 4,200.00 675.00 2,700.00 1,125.00 P 8,700.00
Entered on Dept. Overhead Analysis Sheet (Student’s Inititial)
9 Problem 3-5 (continued)
4.
MATERIALS
DATE Dec. 1 31 31 31 31
EXPLANATION Balance
POST. REF
VR 12 VR 12 MR12 RM12
5.
DEBIT
CREDIT
137,600 3,600 36,050 150
BALANCE 105,197.50 242,797.50 239,197.50 203,147.50 203,297.50
DR. CR. DR DR DR DR DR
Star Aluminum, Inc. Schedule of Materials December 31, 2010
Braces Side rails, 6” Side rails, 8” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12” Washers, 1/4” flat (Box of 100) Total
P64,697.50 15,755.00 17,855.00 28,957.50 27,600.00 43,237.50 5,200.00 P203,297.50
Problem 3-4 (continued) DEPARTMENTAL OVERHEAD ANALYSIS SHEET Department Welding
DATE Dec..18
REF. R086
TOTAL 2,000
Month of INDIRECT MATERIALS 2,000
INDIRECT LABOR
REPAIRS
December , 2010 OTHER ITEMS AMOUNT
Problem 3-3, 3-4 and 3-5 (continued)
VOUCHERS REGISTERS For the Month of December , 2010 Paid Check
Voucher Date
Dec. 6 16 20 27
No.
101 102 103 104
Page
Payable To
Doors Dist.,Inc. Don Jose, Inc. Pedro Hardware King Dev., Inc.
Date
No.
Vouchers Payable Materials CR 201
DR 121
54,600 37,500 45,500 7,650
54,600 37,500 45,500
145,250
137,600
12
Other Accounts A/C No.
Debit
201 121
11,250 11,250
Credit
3,600 3,600
10 Problem 3-3, 3-4 and 3-5 (continued)
MATERIALS REQUISITIONS JOURNAL For the Month of December
Date Dec.
1
10 18 20 22 28
Req. No. 084 085 086 087 088 089
, 2010
Job No./Dept 72 73 Assembly 72 73 74
Page
Work in Process ( DR 122) 7,050 7,250
FO Control (DR 501)
Materials (CR 121) 7,050 7,250 200 7,050 5,800 8,700 36,050
200 7,050 5,800 8,700 35,850
12
200
RETURNED MATERIALS JOURNAL For the Month of December
Date Dec.
21
Req. No. 084
, 2010
Job No./Dept 73
Work in Process ( DR 122) 150
Page FO Control (DR 501)
12 Materials (CR 121) 150
11 Problem 3-4 (continued)
1.
MATERIALS REQUISITIONS
DELIVER TO Assembly Dept. CHARGE: ACCT, 122 JOB QUANTITY
MAT. NO.
25 boxes
DESCRIPTION
W – 125
Entered On Materials Ledger Card
Material Requisition No. DATE 12/18/2010
Washers, !” flat (Box of 100)
Entered In Materials Req. Journal
(Student’s Initial)
(Student’s Initial)
Approved By:
300 150 300 150
RA – 6 ST – 12 ST – 15 TO -612
Entered On Materials Ledger Card
(Student’s Initial) Approved By:
Entered on Dept. Overhead Analysis Sheet (Student’s Initial)
Received By:
Material Requisition No. DATE 12/20/2010
DESCRIPTION Side rails, 6” Steps, 4” x 12” Steps, 4” x 15” Tops, 6” x 12”
Entered In Materials Req. Journal
(Student’s Initial) Delivered by:
AMOUNT P200
(Student’s Initial)
Delivered by:
MAT. NO.
8.00
Entered on Job Cost Sheet
DELIVER TO Assembly Dept. CHARGE: ACCT, 122 72 JOB QUANTITY
UNIT PRICE
086
UNIT PRICE P 11.50 4.50 6.00 7.50
Entered on Job Cost Sheet
(Student’s Initial) Received By:
087
AMOUNT P 3,450 675 1,800 1,125 P 7,050
Entered on Dept. Overhead Analysis Sheet (Student’s Initial)
