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