1

CHAPTER 3
Multiple choices - Theoretical
1.
2.
3.
4.

d
a
a
d

5.
6.
7.
8.

b
d
b
a

9.
10.
11.
12.

a
d
b
d

Multiple Choices Computational

1.

(a)
Total material requisitions
Less: Returned materials
Material cost

2.

(a)

3.

(a)
Beginning balance
Purchases
Issued
Ending inventory
Unit price
Cost of ending inventory

4.

(a)

5.

(a)

P36,926
477
P36,440

15,980 units
6,600
(13,050)
9,530 units
x P6.80
P9,546.80

2
SOLUTIONS TO PROBLEMS
Problem 3-1
MATERIALS LEDGER CARD
Materials
Number
Date
June 1
4
10
15
16
19
23
27
29
30

W 64

Ref.
Bal
PO310
MR41
MR49
RM48
MR58
PO351
RSO24
MR61
RM56

Units

Reorder Point 600 units

Reorder Quantity 1,200 units
RECEIVED
Price
Amount

1,300

8.00

1,300
(100)

8.00
8.00

Units

ISSUED
Price

Amounts

10,400
250
1,150
(220)
120

8.00
8.00
8.00
8.00

2,000
9,200
(1,760)
960

620
(150)

8.00
8.00

4,960
(1,200)

10,400
(800)

BALANCE
Units
Price
Amounts
560
P4,480
1,860
14,880
1,610
12,880
460
3,680
680
5,440
560
4,480
1,860
14,880
1,760
14,080
1,140
9,120
1,290
10,320

Problem 3-2
1.

MATERIALS REQUISITIONS JOURNAL

For the Month of

May

Date

Job No./Dept
25
26
Finishing
26

May 8

14
21
24

Req. No.
41
26
43
44

, 2010

Page

Work in Process
( DR 122)
26,150
49,600

FO Control
(DR 501)
16,600

32,100
107,850

16,600

2
Materials
(CR 121)
26,150
49,600
16,600
32,100
124,450

VOUCHERS REGISTER
For the Month of May

Date

Voucher
No.

May 4
17
26
29

051
052
053
RSO 28

2.

Payable To
Shaft Supply
Ace Corp.
Handyman
Handyman

, 2010

Page

Paid
Check
Date
No.

Vouchers
Payable Materials
CR 201
DR 121
58,100
56,400
39,800
(3,900)
150,400

MATERIALS

58,100
56,400
39,800
(3,900)
150,400

20

Other Accounts
A/C
No.

Debit

Credit

DATE
May 1
31
31

EXPLANATION
Balance

POST.
REF
VR 20
MR2

DEBIT

CREDIT

150,400
124,450

BALANCE
155,500
305,900
181,450

DR.
CR.
DR
DR
DR

Problem 3-3, 3-4 and 3-5

MATERIALS LEDGER
Materials
Number
Date
Dec. 1
20

Reorder Point 6,000 units

Reorder Quantity 13,000 units

Braces
BR 10

Ref.
Bal.
PO705

Units

RECEIVED
Price Amount

13,000

3.50

Units

ISSUED
Price Amount

45,500

Materials Side Rail 6

Number
RA-6
Date
Dec. 1
1
20

Ref.
Bal.
R084
R087

Units

RECEIVED
Price Amount

Reorder Point 3,000 units

Reorder Quantity 8,000 units
Units
300
300

ISSUED
Price Amount
11.50
11.50

Materials Side Rail 8

Number
RA-8
Date
Dec. 1
10
22
28

Ref.
Bal.
R015
R018
R019

Units

RECEIVED
Price Amount

BALANCE
Units
Price Amount
5,485 3.50
19,197.50
18,485 3.50
64,697.50

3,450
3,450

Units
1,970
1,670
1,370

BALANCE
Price Amount
11.50 22,655.00
19,205.00
15.755.00

Reorder Point 1.900 units

Reorder Quantity 3,850 units
Units
250
200
300

ISSUED
Price Amount
14.00
14.00
14.00

3,500
2,800
4,200

Units
2,025
1,775
1,575
1,275

BALANCE
Price Amount
14.00 28,350.00
24,850.00
22,050.00
17,850.00

Problems 3-3, 3-4 and 3-5 (continued):

Materials Steps 4x12
Number
ST-12
Date
Dec. 1
1
6
10
20
22
27
28

Ref.
Bal.
R084
PO073
R085
R087
R088
RSO8
R089

Units

Reorder Point 2,500 units

Reorder Quantity 6,000 units

RECEIVED
Price Amount

6,000

4.50

(800)

4.50

Units

ISSUED
Price Amount

150

4.50

675.00

125
150
100

4.50
4.50
4.50

562.50
675.00
450.00

150

4.50

675.00

27,000

(3,600)

Materials Steps 4x15

Number
ST-15
Date
Dec. 1
1
6
10
20
21
22
28

Ref.
Bal.
R084
PO073
R085
R087
RM84
R088
R089

Units

6.00

Units

ISSUED
Price Amount

300

6.00

1,800

375
300
(25)
300
450

6.00
6.00
6.00
6.00
6.00

2,250
1,800
(150)
1,800
2,700

27,600

Materials Tops 6x12

Number
TO612
Date
Dec. 1
1
10
16
20
22
28

Ref.
Bal.
R084
R085
PO074
R087
R088
R089

Units

5,000

Ref.
Bal.
R086

Units

Units
1,700
1,400
6,000
5,625
5,325
5,350
5,050
4,600

BALANCE
Price Amount
6.00
10,200.00
8,400.00
36,000.00
33,750.00
31,950.00
32,100.00
30,300.00
27,600.00

Reorder Point 2,400 units

Reorder Quantity 5,000 units

RECEIVED
Price Amount

7.50

Units

ISSUED
Price Amount

150
125

7.50
7.50

1,125
937

150
100
150

7.50
7.50
7.50

1,125
750
1,125

37,500

Materials Washers
Number
W-125
Date
Dec. 1
1

BALANCE
Price Amount
4.50
8,595.00
7,920.00
34,920.00
34,357.50
33,682.50
33,232.50
29,632.50
28,957.50

Reorder Point 2,500 units

Reorder Quantity 4,600 units

RECEIVED
Price Amount

4,600

Units
1,910
1,760
7,760
7,635
7,485
7,385
6,585
6,435

Units
1,440
1,290
1,165
6,165
6,015
5,915
5,765

BALANCE
Price Amount
7.50
10,800.00
9,675.00
8,737.50
46,237.50
45,112.50
44,362.50
43,237.50

Reorder Point 300 boxes

Reorder Quantity 940 boxes
RECEIVED
Price Amount

Units
25

ISSUED
Price Amount
8.00

200

Units
675
650

BALANCE
Price Amount
8.00
5,400
5,200

Problem 3-3 (continued)

2.

MATERIALS REQUISITIONS
DELIVER TO Welding Dept.
CHARGE: ACCT, 122
JOB
72
QUANTITY

MAT. NO.

300
150
300
150

DESCRIPTION

RA 6
ST 12
ST 15
TO -612

Entered On
Materials Ledger Card

Material Requisition No.

DATE 12/1/2010

Side rails, 6
Steps, 4 x 12
Steps, 4 x 15
Tops, 6 x 12

Entered In
Materials Req. Journal

(Students Initial)

(Students Initial)

Approved By:

P 11.50
4.50
6.00
7.50

Entered on Job
Cost Sheet

Delivered by:

MAT. NO.

250
125
375
125

RA - 8
ST 12
ST 15
TO -612

Entered On
Materials Ledger Card
(Students Initial)
Approved By:

P 3,450
675
1,800
1,125
P 7,050

(Students Initial)

Received By:

Material Requisition No.

DATE 12/10/2010
DESCRIPTION
Side rails, 8
Steps, 4 x 12
Steps, 4 x 15
Tops, 6 x 12

Entered In
Materials Req. Journal
(Students Initial
Delivered by:

AMOUNT

Entered on Dept.
Overhead Analysis
Sheet

(Students Initial)

DELIVER TO Welding Dept.

CHARGE: ACCT, 122
JOB
73
QUANTITY

UNIT PRICE

084

UNIT PRICE
P 14.00
4.50
6.00
7.50

Entered on Job
Cost Sheet
(Students Initial)
Received By:

085

AMOUNT
P 3,500.00
562.50
2,250.00
937.50
P 7,250.00

Entered on Dept.
Overhead Analysis
Sheet
(Students Inititial)

Problems 3-3 and 3-4 (continued)

JOB COST SHEET
Customer:
Chico Supply Co.
Description: Aluminum Doors
Quantity:
300
MATERIALS
REQ.
DATE
NO.
AMOUNT
12/1
R084
7,050
12/10
R087
7,050

Job
72
Date Started 12/1/2010
Date Completed

DIRECT LABOR
REF.
DATE
NO.
HRS. AMOUNT

MFG. OVERHEAD APPLIED

REF.
DATE NO.
RATE AMOUNT

JOB COST SHEET

Customer:
Apple Const. Supply Co.
Description: Aluminum Ladders 6
Quantity:
250
MATERIALS
REQ.
DATE
NO.
AMOUNT
12/10
R085
7,250
12/21
RM84
(150)
12/22
R088
5,800

Job
73
Date Started 12/10/2010
Date Completed

DIRECT LABOR
REF.
DATE
NO.
HRS. AMOUNT

MFG. OVERHEAD APPLIED

REF.
DATE NO.
RATE AMOUNT

Problem 3-5 (continued)

JOB COST SHEET
Customer:
Santol Co.
Description: Aluminum Ladders 8
Quantity:
300
MATERIALS
REQ.
DATE
NO.
AMOUNT
12/28
R089
8,700

DIRECT LABOR
REF.
DATE
NO.
HRS. AMOUNT

Job
74
Date Started 12/28/2010
Date Completed
MFG. OVERHEAD APPLIED
REF.
DATE NO.
RATE AMOUNT

Problem 3-4 (continued)

RETURNED MATERIALS REPORT
CREDIT:

QUANTITY
25

ACCT.
Job No.

Returned Materials Report

No.
84
Date 12/21/2010
Dept.

73

MAT. NO.
ST - 15

DESCRIPTION
Steps, 4 x 15

UNIT COST
6.00

AMOUNT
150.00

REASON FOR RETURN

Entered on
Materials Ledger Card
(Students Initial)

Entered on
Job Cost Sheet
(Students Initial)

Entered on
Dept. Overhead
Analysis Sheet

Received by

Problem 3-5 (continued)

1.

MATERIALS REQUISITIONS

DELIVER TO Welding Dept.

CHARGE: ACCT, 122
JOB
73
QUANTITY

MAT. NO.

200
100
300
100

DESCRIPTION

RA 8
ST 12
ST 15
TO -612

Entered On
Materials Ledger Card

Material Requisition No.

DATE 12/22/2010

Side rails, 8
Steps, 4 x 12
Steps, 4 x 15
Tops, 6 x 12

Entered In
Materials Req. Journal

(Students Initial)

(Students Initial)

Approved By:

P 14.00
4.50
6.00
7.50

Entered on Job
Cost Sheet

Delivered by:

MAT. NO.

300
150
450
150

RA - 8
ST 12
ST 15
TO -612

Entered On
Materials Ledger Card
(Students Initial)
Approved By:

P 2,800.00
450.00
1,800.00
750.00
P 5,800.00

(Students Initial)

Received By:

Material Requisition No.

DATE 12/28/2010
DESCRIPTION
Side rails, 8
Steps, 4 x 12
Steps, 4 x 15
Tops, 6 x 12

Entered In
Materials Req. Journal
(Students Initial
Delivered by:

AMOUNT

Entered on Dept.
Overhead Analysis
Sheet

(Students Initial)

DELIVER TO Welding Dept.

CHARGE: ACCT, 122
JOB
74
QUANTITY

UNIT PRICE

088

UNIT PRICE
P 14.00
4.50
6.00
7.50

Entered on Job
Cost Sheet
(Students Initial)
Received By:

089

AMOUNT
P 4,200.00
675.00
2,700.00
1,125.00
P 8,700.00

Entered on Dept.
Overhead Analysis
Sheet
(Students Inititial)

Problem 3-5 (continued)

4.

MATERIALS

DATE
Dec. 1
31
31
31
31

EXPLANATION
Balance

POST.
REF
VR 12
VR 12
MR12
RM12

5.

DEBIT

CREDIT

137,600
3,600
36,050
150

BALANCE
105,197.50
242,797.50
239,197.50
203,147.50
203,297.50

DR.
CR.
DR
DR
DR
DR
DR

Star Aluminum, Inc.

Schedule of Materials
December 31, 2010
Braces
Side rails, 6
Side rails, 8
Steps, 4 x 12
Steps, 4 x 15
Tops, 6 x 12
Washers, 1/4 flat (Box of 100)
Total

P64,697.50
15,755.00
17,855.00
28,957.50
27,600.00
43,237.50
5,200.00
P203,297.50

Problem 3-4 (continued)

DEPARTMENTAL OVERHEAD ANALYSIS SHEET
Department Welding
DATE
Dec..18

REF.
R086

TOTAL
2,000

Month of
INDIRECT
MATERIALS
2,000

INDIRECT
LABOR

REPAIRS

December , 2010
ITEMS

OTHER
AMOUNT

Problem 3-3, 3-4 and 3-5 (continued)

VOUCHERS REGISTERS
For the Month of December , 2010

Date

Voucher
No.

Dec. 6
16
20
27

101
102
103
104

Payable To
Doors Dist.,Inc.
Don Jose, Inc.
Pedro Hardware
King Dev., Inc.

Paid
Check
Date
No.

Page
Vouchers
Payable Materials
CR 201
DR 121
54,600
37,500
45,500
7,650

54,600
37,500
45,500

145,250

137,600

12

Other Accounts
A/C
No.

201
121

Debit

Credit

11,250
11,250

3,600
3,600

10

Problem 3-3, 3-4 and 3-5 (continued)

MATERIALS REQUISITIONS JOURNAL
For the Month of December
Date
Dec.

10
18
20
22
28

Req. No.
084
085
086
087
088
089

, 2010

Job No./Dept
72
73
Assembly
72
73
74

Page

Work in Process
( DR 122)
7,050
7,250

FO Control
(DR 501)

Materials
(CR 121)
7,050
7,250
200
7,050
5,800
8,700
36,050

200
7,050
5,800
8,700
35,850

12

200

RETURNED MATERIALS JOURNAL

For the Month of December
Date
Dec.

21

Req. No.
084

, 2010

Job No./Dept
73

Work in Process
( DR 122)
150

Page
FO Control
(DR 501)

12
Materials
(CR 121)
150

11

Problem 3-4 (continued)

1.

MATERIALS REQUISITIONS
DELIVER TO Assembly Dept.
CHARGE: ACCT, 122
JOB
QUANTITY

MAT. NO.

25 boxes

DESCRIPTION

W 125

Entered On
Materials Ledger Card

Material Requisition No.

DATE 12/18/2010

Washers, flat (Box of 100)

Entered In
Materials Req. Journal

(Students Initial)

(Students Initial)

Approved By:

300
150
300
150

RA 6
ST 12
ST 15
TO -612

Entered On
Materials Ledger Card
(Students Initial)
Approved By:

Entered on Dept.
Overhead Analysis
Sheet
(Students Initial)

Received By:

Material Requisition No.

DATE 12/20/2010
DESCRIPTION
Side rails, 6
Steps, 4 x 12
Steps, 4 x 15
Tops, 6 x 12

Entered In
Materials Req. Journal
(Students Initial)
Delivered by:

AMOUNT
P200

(Students Initial)

Delivered by:

MAT. NO.

8.00

Entered on Job
Cost Sheet

DELIVER TO Assembly Dept.

CHARGE: ACCT, 122
JOB
72
QUANTITY

UNIT PRICE

086

UNIT PRICE
P 11.50
4.50
6.00
7.50

Entered on Job
Cost Sheet
(Students Initial)
Received By:

087

AMOUNT
P 3,450
675
1,800
1,125
P 7,050

Entered on Dept.
Overhead Analysis
Sheet
(Students Initial)