Last month, Babe Company placed P60,000 of materials into production. The printing department used 8,000 labor hours at P5.60 per hour and the binding department
Last month, Babe Company placed P60,000 of materials into production. The printing department used 8,000 labor hours at P5.60 per hour and the binding department used 4,600 hours at P6.00 per hour. Factory overhead is applied at a rate of P6.00 per labor hour in the printing department and P8.00 per labor in the binding department. Babe's inventory accounts show the following balances:
Beginning Ending
Finished GoodsP22,000P17,000
Work in ProcessP15,000P17,600
MaterialsP20,000P18,000
12.What is the cost of goods sold?
The following data were taken from the record of Best Company
08/31/2019 09/30/2019
Inventories
Raw Materials?P50,000
Work in processP80,000P95,000
Finished GoodsP60,000P78,000
Raw materials purchases P46,000
Factory overhead, P63,000 which is 75% of direct labor cost
Selling and Administrative Expenses, 12.5%, P25,000
Net Income for September,2011, P25,000
13.What is the cost of raw materials inventory on August 31, 2019?
Worley Company has under applied overhead of P45, 000 for the year. Before disposition of the underapplied overhead, selected year-end balances from Worley's accounting records were
SalesP1,200,000
Cost of Goods SoldP720,000
Direct Materials InventoryP36,000
Work in Process InventoryP54,000
Finished Goods InventoryP90,000
14.Under Worley's cost accounting system, over or under applied overhead is allocated to appropriate inventories and cost of goods sold based on year-end balances in it's year end income statement. Worley should report cost of goods sold of _______.
As part of a cost study, the cost accountant of Shinly Corporation has recorded the cost of operations at seven different levels of materials usage. The records show the following:
Kilos of materialsCosts of operation
80P800
60P480
20P320
120P1, 200
140P1, 280
40P480
100P1, 040
16.Using the high-low points method, the variable cost of operations per kilo of materials used is _______
17.Using the same high-low points method, the fixed cost of operations is _______
18.What is the cost function of the Operation cost?
19.Assuming 150 kilos of material usage is expected to occur next month, how much will be the estimated operations cost based on the cost function generated from high-low method?
20.Using the least squares method, the average rate of variability per kilo of materials used is
21.Using the least square method, the fixed portion of the cost is _________
22.Assuming 98 kilos of material usage is expected to occur next month, how much will be the estimated operations cost based on the cost function generated from least square method?
Data about Maritz Company's production and inventories for the month of June are as follows:
Purchases - Direct materialsP143, 440
Freight-inP5, 000
Purchase returns and allowancesP2, 440
Direct laborP175, 000
Actual factory overheadP120, 000
Inventories:
Finished goodsP68, 000P56, 000
Work in ProcessP110, 000P135, 000
Direct materialsP52, 000P44, 000
Maritz Company applies factory overhead to production at 80% of direct labor cost. Over or under applied overhead is closed to cost of goods sold at year-end. The company's accounting period is on the calendar year basis.
23.Maritz Company's prime cost for June was _________.
24.Maritz Company's conversion cost for June was ________.
25.For the month of June, Maritz Company's total manufacturing cost was _______.
26.For June, Maritz Company's cost of goods transferred to the finished goods inventory account was _________.
27.Maritz Company's cost of goods sold for June was _________.
28.The journal entry for adjustment of cost of goods sold is _______.
29.The amount of over/under applied overhead factory for the month of June was ________.
30.The cost of goods sold for the month of June should be increased (decreased) by the amount of over/under applied factory overhead of _________.
PART V. Norton Company's manufacturing costs for 2009 were as follows: Direct materials, P300, 000; Direct labor - P400, 000; Factory overhead variable - P80, 000 and fixed - P50, 000.
1.Prime cost
2.Conversion cost
3.Total manufacturing cost
PART VI. The following data are available for Justine Corporation for the year ending December 31, 2009
January 1 December 31
Inventories
MaterialsP100, 000P150, 000
Work in processP180, 000P128, 000
Finished GoodsP90, 000P110, 000
Direct labor costP290, 000
Materials purchasedP320, 000
Factory overhead - applied at 120% of direct labor cost
4.Direct materials used
5.Total manufacturing cost
6.Cost of good manufactured
7.Cost of goods sold
PART VII. The following is a partial list of costs incurred last month by the Fontana Company.
Product advertisingP20, 000
Fire insurance premium for factoryP5, 000
Electricity, sales officeP2, 000
Lubricating oil for sewing machinesP4, 000
Foam cushions used in productionP32, 000
Assembly line worker's wagesP46, 000
Rent, factory buildingP10, 000
Freight-outP6, 000
Salary, company presidentP25, 000
Property taxes, corporate headquartersP3, 000
1.What amount of these costs would be considered manufacturing overhead?
2.What amount of these costs would be considered period costs?
3.What amount of these costs would be considered product costs?
PART VIII. The financial statements of Michelle Company included these items.
Marketing costsP128, 000
Direct labor costsP320, 000
Administrative costsP94, 000
Direct materials usedP385, 000
Fixed factory overhead costsP285, 000
Variable factory overhead costsP175, 000
1.Prime cost
2.Conversion cost
3.Total product cost
4.Total period cost
PART X. The accounting records for 2008 of EGGS Manufacturing Company showed the following
Decrease in raw materials inventoryP45, 000
Increase in Finished goods inventoryP150, 000
Increase in work in process inventoryP60, 000
Raw materials purchasedP1, 290, 000
Direct labor payrollP600, 000
Factory overheadP900, 000
1.The cost of raw materials used for the period amounted to
2.The cost of goods manufactured is
PART XI. Brand Company manufactures computer stands. Cost of Goods Sold is P125, 000, the ending balance of Finished Goods Inventory is 80% less than its beginning balances. The Cost of Goods Manufactured is 60% of cost of goods sold.
3.What is the beginning balance of Finished Goods Inventory?
PART XII. The following information was taken from the records of PARIS Manufacturing Company:
Increase in Finished GoodsP36, 500
PurchasesP70, 000
Increase in work in processP18, 200
Direct laborP84, 875
Decrease in raw materialsP9, 700
Work in process, beginningP64, 000
Total costs placed in processP310, 000
4.The amountof cost of goods sold
5.The amount of applied factory overhead
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