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Problem 1.

A certain company incurred a total manufacturing cost of P130,000, distributed as follows: Direct Materials P60,000, Direct Labor
P40,000, and factory overhead P30,000. At the end of the period it was determined that the work in process increased by P20,000, while the finished
goods decreased by P8,000. How much would be the cost of goods sold for the period?
Problem 2. The cost of goods manufactured of XXX Corporation for the month was P105,000, while the raw materials used was P50,000. At the end
of the month work in process decreased by P20,000, while finished goods increased by P15,000. Labor cost was determined to be 50% of raw
materials used. How much would be the cost of goods sold and the factory overhead for the month?
Problem 3. The following information is provided by Maunlad Mfg. Corp.:
COGM
P
Labor Cost
FOH
FG Beginning
FG Ending
COGS
Raw Materials Used
WIP end
How much would be the costs of raw materials used?

470,000
100,000
50,000
30,000
20,000
480,000
500% of WIP end
75% of WIP beginning

Problem 4. If the total manufacturing costs for the month is P142,000, while the finished goods beginning and ending were P20,000 and P12,000
respectively. How much would be the costs of Work in Process Beginning and Ending respectively, assuming cost of goods sold is P158,000 and
that the work in process ending is 80% of the work in process beginning?
Problem 5. The following information was taken from the accounting books of Cody Cos.
Decrease in Raw Materials Inventory
P
15,000
Increase in Finished Goods Inventory
35,000
Raw Materials Purchased
430,000
Direct Labor Payroll
200,000
Factory Overhead
300,000
Freight out
45,000
Indirect materials used
2,500
Purchase Discount
1,250
Purchase Return
2,250
Sales Return at cost
5,000
Excess materials issued (return from factory)
1,000
How much was the cost of goods sold if there was no WIP at the beginning or at the end?
Problem 6: Downstream Manufacturing Company realized too late that it had made a mistake locating its controllers office and its electronic data
processing system in the basement. Because of the Typhoon, the Pasig River overflowed on May 2 and flooded the companys basement. Electronic
data storage was beyond retrieval, and the company had not provided off-site storage of data. Some of the paper printouts were located but were
badly faded and only partially legible. On May 3, when the river subsided, company accountants were able to assemble the following factory-related
data from the debris and from discussions with various knowledgeable personnel. Data about the following accounts were found:
Raw Material (includes indirect material) Inventory: Balance April 1 was P4,800.
Work in Process Inventory: Balance April 1 was P7,700.
Finished Goods Inventory: Balance April 30 was P6,600.
Total company payroll cost for April was P29,200.
Accounts payable balance April 30 was P18,000.
Indirect material used in April cost P5,800.
Other nonmaterial and non-labor overhead items for April totalled P2,500.
Payroll records, kept at an across-town service center that processes the companys payroll, showed that Aprils direct labor amounted to P18,200
and represented 4,400 labor hours. Indirect factory labor amounted to P5,400 in April. The presidents office had a file copy of the production budget
for the current year. It revealed that the predetermined manufacturing overhead application rate is based on planned annual direct labor hours of
50,400 and expected factory overhead of P151,200.
Discussion with the factory superintendent indicated that only two jobs remained unfinished on April 30. Fortunately, the superintendent also had
copies of the job cost sheets that showed a combined total of P2,400 of direct material and P4,500 of direct labor. The direct labor hours on these
jobs totalled 1,072. Both of these jobs had been started during the current period. A badly faded copy of Aprils Cost of Goods Manufactured and
Sold schedule showed cost of goods manufactured was P48,000, and the April 1 Finished Goods Inventory was P8,400.
The treasurers office files copies of paid invoices chronologically. All invoices are for raw material purchased on account. Examination of these files
revealed that unpaid invoices on April 1 amounted to P6,100; P28,000 of purchases had been made during April; and P18,000 of unpaid invoices
existed on April 30.
1.
2.
3.
4.

5.

Calculate the cost of direct material used in April.


Calculate the cost of raw material issued in April.
Calculate the April 30 balance of Raw Material Inventory.
Determine the amount of under applied or over applied overhead for April.
What is the Cost of Goods Sold for April?