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Use the following to answer questions 1-4:

XXX

consequence of the raw materials transactions in November


total:
9. The debits to the Manufacturing Overhead account as a
consequence of the raw materials transactions in November
total:
10. The credits to the Manufacturing Overhead account as a
consequence of the raw materials transactions in November
total:
Use the following to answer questions 11-12:
Hamilton Company uses job-order costing. Manufacturing
overhead is applied using a predetermined rate of 150% of
direct labor cost. Any over- or underapplied manufacturing
overhead is closed to the Cost of Goods Sold account at the
end of each month. Additional information is available as
follows:

XXX

Job 101 was the only job in process at January 31. The job
cost sheet for this job contained the following costs at the
beginning of the month:

The following journal entries without dollar data were taken


from the accounting records of a company that has a joborder costing system in which overhead is applied to jobs
using a predetermined overhead rate.
1
.

2
.
3
.
4
.
5
.
6
.
7
.
8
.

Work in Process
Manufacturing Overhead
Wages Payable

XXX
XXX

Salary Expense
Wages Payable

XXX

Manufacturing Overhead
Accumulated Depreciation

XXX

Work in Process
Raw Materials

XXX

Work in Process
Manufacturing Overhead

XXX

XXX

Direct materials........................................
Direct labor.............................................
Applied manufacturing overhead.................

XXX

XXX

Manufacturing Overhead
Raw Materials

XXX
XXX

Finished Goods
Work in Process
Raw Materials
Accounts Payable

XXX
XXX
XXX
XXX

QUESTIONS:
1.The entry to record the purchase of raw materials is:
2. The entry to transfer the cost of goods manufactured for
the period is:
3. The entry to record the application of overhead is:
4. The entry to record depreciation on manufacturing
equipment is:
Use the following to answer questions 5-10:
On November 1, Arvelo Corporation had P32,000 of raw
materials on hand. During the month, the company purchased
an additional P78,000 of raw materials. During November,
P95,000 of raw materials were requisitioned from the
storeroom for use in production. These raw materials included
both direct and indirect materials. The indirect materials
totaled P3,000.
Questions:
5. The debits to the Raw Materials account for the month of
November total:
6. The credits to the Raw Materials account for the month of
November total:
7. The debits to the Work in Process account as a
consequence of the raw materials transactions in November
total:
8. The credits to the Work in Process account as a

P4,000
2,000
3,000

Jobs 102, 103, and 104 were started during February.


Direct materials requisitions for February totaled
P26,000.
Direct labor cost of P20,000 was incurred for
February.
Actual manufacturing overhead was P32,000 for
February.
The only job still in process at February 28 was Job
104, with costs of P2,800 for direct materials and P1,800
for direct labor.

Questions:
11. The cost of goods manufactured for February was:
12.For the month of February, the manufacturing
overhead was:
Use the following to answer questions 13-16:
The information below has been taken from the cost records
of Tercel Company for the past year:

Raw materials used in production.........................................


Total manufacturing costs charged to jobs during the year
(includes raw materials, direct labor, and manufacturing
overhead applied at the rate of 60% of direct labor cost).....
Cost of goods available for sale............................................
Selling and administrative expenses.....................................
Inventories
Raw Materials.....................
Work in Process..................
Finished Goods...................

Beginning
P75,000
80,000
90,000

Ending
P85,000
30,000
110,000

13. The cost of raw materials purchased during the year


amounted to:
14.Direct labor costs charged to production during the
year amounted to:
15.The Cost of Goods Manufactured during the year was:
16.The Cost of Goods Sold for the year (before disposition
of any overhead underapplied or overapplied) was:

5,700
8,000
7,800
Use the following to answer questions 17-19:
The following data are for Potras Company:
Beginning
Finished goods inventory................ P30,000
Work in process inventory...............
20,000
Raw materials inventory.................
21,000
Purchases of raw materials........................
Factory depreciation..................................
Other factory costs...................................
Direct labor.............................................
Indirect labor...........................................
Selling expense........................................
Underapplied or overapplied overhead.........

Ending
P40,000
13,000
26,000

Wages & Salaries Payable


19,900 Bal.
2,000
11,000

P71,000
5,000
10,000
27,000
6,000
12,000
0

Questions:
17.The cost of raw materials used in production was:
18.The cost of goods manufactured was:
19.The cost of goods sold was:

Use the following to answer questions 20-22:


Chavez Corporation reported the following data for the month
of July:
Inventories
Beginning
Raw materials.................... P27,000
Work in process..................
16,000
Finished goods...................
32,000

Manufacturing Overhead
2,300
7,800
3,000
2,700

Ending
P30,000
17,000
47,000

Cost of Goods Sold


19,900

Questions:
23.
The Cost of Goods Manufactured was:
24.The direct labor cost was:
25.The direct materials cost was:
26.The manufacturing overhead applied was:
27.The manufacturing overhead was:
ASSIGNMENT:
Alagan Company is a manufacturing firm that uses job-order
costing. At the beginning of the year, the company's inventory
balances were as follows:

Additional information:
Raw materials purchases......................................................
P66,000
Direct labor cost..................................................................
91,000
Manufacturing overhead cost incurred.....................................
59,000
Indirect materials included in manufacturing
overhead cost incurred......................................................
8,000
Manufacturing overhead cost applied to Work
in Process........................................................................
58,000
Questions:
20.The direct materials cost for July is:
21.The cost of goods manufactured for July is:
22.The adjusted cost of goods sold that appears on the
income statement for July is:
Use the following to answer questions 23-27:
The following partially completed T-accounts summarize
transactions for Faaberg Company during the year:
Bal.

Bal.

Bal.

Raw Materials
4,500
4,700

8,000

Finished Goods
1,700
19,900
21,700
Work in Process
3,600
21,700

Raw materials....................
Work in process..................
Finished goods...................

P10,000
81,000
20,000

The company applies overhead to jobs using a


predetermined overhead rate based on machine-hours. At
the beginning of the year, the company estimated that it
would work 37,000 machine-hours and incur P222,000 in
manufacturing overhead cost. The following transactions
were recorded for the year:
a.
b.
c.
d.
e.

Raw materials were purchased, P372,000.


Raw materials were requisitioned for use in
production, P367,000 (P345,000 direct and
P22,000 indirect).
The following employee costs were incurred:
direct labor, P309,000; indirect labor, P44,000;
and administrative salaries, P155,000.
Selling costs, P140,000.
Factory utility costs, P21,000.

f.

g.
h.
i.
j.

Depreciation for the year was P163,000 of which


P154,000 is related to factory operations and
P9,000 is related to selling, general, and
administrative activities.
Manufacturing overhead was applied to jobs. The
actual level of activity for the year was 37,000
machine-hours.
The cost of goods manufactured for the year was
P894,000.
Sales for the year totaled P1,233,000 and the
costs on the job cost sheets of the goods that
were sold totaled P879,000.
The balance in the Manufacturing Overhead
account was closed out to Cost of Goods Sold.

Required:
Prepare the appropriate journal entry for each of the
items above. You can assume that all transactions
with employees, customers, and suppliers were
conducted in cash.