BBB Inc. is employing normal costing for its job orders. The overhead is applied using a predetermined
Question:
BBB Inc. is employing normal costing for its job orders. The overhead is applied using a predetermined overhead rate. The following information relates to BBB Inc. for the year ended December 31, 2019:
Job No. 101 | Job No. 102 | Job No. 103 | |
Job in Process, 01/01/2019 | |||
Direct Materials | P80,000 | P60,000 | P0 |
Labor | 120,000 | 80,000 | 0 |
Factory Overhead | 60,000 | 40,000 | 0 |
Costs added during 2019 | |||
Materials | P40,000 | P20,000 | P200,000 |
Labor | 200,000 | 400,000 | 800,000 |
Factory Overhead | 200,000 | 200,000 | 400,000 |
Additional information:
- Actual overhead for the year 2019 amounted to P800,000.
- Jobs No. 101 and 102 were completed and transferred to finished goods during year 2019.
- Job No. 102 was sold during 2019.
- The gross profit rate based on cost is 20%.
Compute: (6 pts)
- Total manufacturing cost
- Cost of goods manufactured for 2019
- Cost of goods sold 2019
- Gross profit for 2019
- Work-in process for December 31, 2019
- Cost of finished goods for December 31, 2019
PROBLEM 6
CCC Inc. has completed Job 101, containing 1,100 shoes, during 2016 at the following unit costs:
Direct Materials – 2,000 Direct Labor – 1,000
Factory Overhead (including an allowance of P300 for spoiled work - 1,300
Final inspection of Job 101 disclosed 100 spoiled shoes which were sold to a department store for P200,000.
- What is the unit cost of the good shoes produced on Job 101 if spoilage loss is charged to all production? (2 pts)
- What is the unit cost of the good shoes produced on Job 101 if spoilage loss is charged specifically to Job 101? (2 pts)
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso