34.(c) Manufacturing cost Less: Direct labor Applied factory overhead (P100 x 600 hours) (1) Direct materials used Manufacturing cost WIP, WIP, Dec. Dec. 1: Direct Direct materi materials als (3,000 (3,000 x P2.40) P2.40) Direct labor (3,000 x P.80) Applied FO (48 hrs x P100) Total WIP, Dec. 31: DM (2,000 x P2.40) DL (2,000 x P.80) Applied FO (32 hrs. x P100) (2) Cost of goods manufactured Finished goods, Dec. 1 Goods available for sale Finished goods, Dec. 31: DM DL Applied FO (P100 x 60 hrs) (3) Cost of goods sold
P180,000 P30,000 60,000
90,000 P90,000 P180,000
P7,200 P7,200 2,400 4,800 P4,800 1,600 3,200
P5,000 3,000 6,000
14,400 194,400 9,600 P184,800 12,000 196,800
14,000 P182,800
35.(d) (1)Direct materials used Direct labor Applied FO: Moldin Molding g Dept. Dept. (P2.70 (P2.70 x 2,000 2,000 hours) hours) Decorating Dept. (35% x P12,000) Estimated cost to produce (2)
Bid Price
(P65,600 x 145% )
P26,000 30,000 P5,400 P5,400 4,200
9,600 P65,600
P95,120
36.(b) WIP, beg. Current cost: DM DL AFO Total cost
Job 115 P81,200
Job 116
Job 117
P39,000 P53,000 26,000 45,000 47,000 31,200 54,000 56,400 P138,400 P138,000 P156,400
(1)
Cost of goods manufactured:
(2)
WIP, Aug. 31 (Job 118)
37.
(c)
(1)P1,280,000 / P1,600,000
=
(2)WIP, end Direct Labor Applied FO (.80 x P100,000) Direct materials
Job 118
Total
P47,000 P139,000 16,000 134,000 19,200 160,800 P82,200 P515,000
Job 115 Job Job 116 116 Job 117 Total
P128,400 138, 138,00 000 0 156,400 P432,800 P 82,200
80% P280,000 (100,000) ( 80,000) P100,000
38.(a) (1)Accounts payable, March 31 Payment of accounts payable (for materials) Accounts payable, March 1 Materials purchased
P
20,000 70,000 (12,000) P 78,000
(2)This can be computed by working backward from cost of goods sold as follows: Costs of goods sold Finished goods inventory, March 31 Finished goods inventory, March 1 Cost of goods manufactured Work in process, March 31 (P12,000+P24,000+P48,000) Work in process, March 1 Manufacturing cost Applied factory overhead (200% x P160,000) Direct labor Direct materials used Materials inventory, March 31 Purchases (1) Materials inventory, March 1
P
600,000 120,000 (100,000) 620,000 84,000 (60,000) 644,000 (320,000) (160,000) 164,000 30,000 (78,000) P 116,000
41.(c) Work in process, May 1 : Job 769 P9,000 Job 772 2,900 P11,900 Current cost: Direct materials P26,000 Direct labor 20,000 Applied factory overhead (150% x P20,000)30,000 76,000 Total cost of goods placed in process 87,900 Less: Work in process, May 31 (Job 779): Direct materials P2,800 Direct labor 1,800 Applied factory overhead (150% x P1,800) 2,700 7,300 Cost of goods manufactured P80,600 Finished goods inventory, May 31 (job 776) 4,000 Cost of goods sold at normal P76,600 42.(d) Work in process, beginning P40,000 Current costs: Direct materials P98,000 Direct labor 50,000 Applied factory overhead (P30 x 2,000 hours)60,000 208,000 Total 248,000 Manufacturing cost 210,000 Work in process, end P38,000 45.(a) Direct materials used P45,000 (cr) Direct labor 11,500 (cr) Applied factory overhead : Job X (P5,000 x 200%*) P10,000 Job Y (P4,000 x 200%*) 8,000 Job Z (P2,500 x 200%*) 5,000 23,000 (cr) Total manufacturing cost charged to Work in Process P79,500 (dr)
*
P300,000 / P150,000
=
200%
46.(d) Direct materials used: Materials inventory, June 1 P 97,200 Purchases 120,000 Available for use 217,200 Materials inventory, June 30 102,000 Direct labor (19,800 hours x 5) Applied factory overhead (19,800 hours x P2.50) Manufacturing cost Work in process, June 1 Total Work in process, June 30 Cost of goods manufactured
P115,200 99,000 49,500 263,700 21,420 285,120 48,420 P263,700
(1)
(2)
47.(a) Direct materials used: Materials inventory, 11/1 Purchases Available for use Materials inventory, 11/30 Direct labor (25,000 hours x P4) Applied factory overhead (25,000 hours x P3) Factory cost Work in process inventory, 11/1 Total Work in process inventory, 11/30: Direct materials Direct labor (5,000 x P4) Applied factory overhead (5,000 x P3) Cost of goods manufactured
P
P
10,000 50,000 60,000 25,000
5,000 20,000 15,000
P35,000 100,000 75,000 210,000 50,000 260,000
40,000 P220,000
( 1) (2)
54.(a) Work in process, January 1 P20,000 Manufacturing cost: Direct materials used P380,000 Direct labor 360,000 Applied factory overhead 480,000 1,220,000 Total 1,240,000 Cost of goods manufactured (debit to finished goods) 940,000 Work in process, December 31 P 300,000 55.(b) Cost of goods manufactured P940,000 Finished goods, January 1 10,000 Goods available for sale 950,000 Finished goods, December 31 50,000 Cost of goods sold before adjustment for over/under applied overhead P900,000 56.(b) Actual manufacturing overhead Applied manufacturing overhead Under-applied overhead
P540,000 480,000 P 60,000
57.(a) Sales P1,090,000 Cost of goods sold at actual (P900,000 + P60,000) 960,000 Gross profit ,000 Manufacturing expenses 140,000 Operating income (loss) P( 10,000) 58.(c) Sales P1,090,000 Cost of goods sold 943,200 Gross profit 146,800 Manufacturing overhead 140,000 Operating income P6,800 Prorating of under-applied overhead: Amount Ratio Work in process P300,000 24% Finished goods 50,000 4% Cost of goods sold 900,000 72% Total P1,250,000 100%
Pro-ration P14,400 2,400 43,200 P60,000
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