victors: e* Instr All computations must be in good form. worksheet charity Company isa special order manufacturer of metal products. Each period, company ‘accumulates fairly large quantities of metal shavings and trimmings from the products it ma nufactures. At least once a month, the scrap metals are gold to a local scrap metal dealer. This month, scrap sales for shavings not ceable to any particular jobs total P5,500. In addition, during the current year {, 200 metal door facings were cut to an incorrect size on job 555 and had to the trai period be replac d. Although the defective facings cannot be used on job 555, they can pe sold as salvage for P22.50 each. The cost of cutting, the 200 defective facing is: Materials (1,200 sq ft of sheet metal x P10) P12,000 Labor (10 hours x P150 per hour) 1,500 Overhead (10 hours x P450 per hour) 4,500 1. The total amount remove from work in process account must be: a 4,500 c. 18,000 b. P13,500 d. 23,500 Mark Shoe Company had a production run of 10,000 pairs of quality shoes during the month of June 2016, at the following costs per pair: Materials, P80; Labor, P50; and Overhead (125% of direct labor cost). Final inspection revealed that 500 pairs were spoiled which were sold as seconds for P20,000. The good units were then shipped to the customer at cost plus 50% mark-up on cost. 2. Assuming the spoilage is @ result of changes in the specification of the customer, the cost per good unit is a. P190.50 c. P194.62 b. P192.50 d. 200.53 Below are balances and information taken from the records of Bulls Company for the last quarter of the current year: Inventories; October 1 Raw Materials 134,000 Work in process Ea Finished goods10,800,000, 4,200,000 debit 4,600,000credit Cost of goods sold Manufacturing overhead Supplementary data: ; (1) During the period, purchases of raw materi P1,093,400 while physical count of raw mater that P250,000 were unused at the end of the period (2) 39,800 direct labor hours were utilized distributed as follows: (a) 25,000 hours worked on regular time at 42.50 per hr. (b) 14,000 hours worked at P42.50 plus 10% special night premium (c) 800 hours worked on overtime at regular rate plus 30% OT premium (3) Overhead is charged to production at 80% of direct labor costs. (4) Actual overhead incurred were P1420,000. Overhead variance is closed to all accounts with overhead elements only at the end of the year (5) At the end of the year, records show that work in process increased by P80,000 while Finished Goods decreased by als totaled rials revealed P150,000. 3, The total factory costs for the quarter amounted to; a. P3,960,900 ec. P4,147,560 b. P4,022,100 d. P4,376,100 4. The costs of goods manufactured for the quarter amounted to: a. P3,880,900 c. P4,067,560 b. P3,942,100 d. P4,692,100 At the beginni: i a e ‘ginning of July, Burnham Company had the following account Raw materials Control 16,000 Work in Process inventory 26,00 Finished goods inventory 10,000 During July, the following transactions transpired: * Raw materials were purchased on account, P150,000. * Direct materials of P42 i ee ee and indirect materials of P5,000= 7 e Factory payroll consisted of P100,000 for direct labor employees and P14,000 for indirect labor employees. ¢ Office salaries totaled P42,200 for the month. » Utilities of P17,400 were accrued; 60% of the utilities cost is for the factory area. © Depreciation of P18,000 was recorded on factory plant and equipment and P10,000 was recorded for office depreciation. * Rent of P24,000 was paid on the building. ‘The factory occupies 60% of the building, «At the end of July, unfinished jobs amounted to P16,600 and P19,800 of finished goods are on hand. Burnham Company uses an actual cost system. 5, The total factory cost incurred during the month is: a. P142,400 <. P213,640 b. P204,240 d. P230,240 Jordan Company has the following balances as of the year ended Dec. 31: Direct materials inventory P15,000 Dr. Work in Process inventory 34,500 Dr. Finished goods inventory P49,500 Dr. Manufacturing overhead P4,000 Dr. Cost of goods sold P74,500 Dr. Additional information: Cost of direct materials purchased during the year P 41,000 Cost of direct materials requisitioned for the year P 47,000 Cost of goods completed during the year P102,000 Manufacturing overhead applied (120% of DL P-48,000 6, The beginning balance of the, venice goods inventory account is a. P22,000 P34,500 b. 27,500 a P49,500 Joe Witten is a contractor specializing in custom-built jacuzzis. On May 1, his ledger contains the following data: Raw materials inventory P30,000 Work in process inventory 12,200 Manufacturing overhead 2,500 (dt) the! manufacturing overhead account has debit totals of P12, 500 and credit totals of P10,000, Subsidiary data for Work in Process Inventory on May 1 include:JOB COSTS SHEETS Job by customer Direct materials | Direct Tabor_| overhead = Manuel 2,500 P2,000 | P1400 Janna 2,000 1,200 840 Marion 900 800 560 A summary of materials requisition slips and time tickets for the month of May reveals the following: Job by customer Mat requisition # Time tickets _| Manuel P 500 P 400 Janna 600 1,000 Marion 2,300 1,300 Jett 2,400 3,300 For general use 1,500 2,600 During May, the following costs were incurred: a) raw materials purchased on account, P5,000; (b) labor paid, P8,200; (b) manufacturing overhead paid, P1,400. Overhead was charged to jobs on the basis of direct labor cost at the same rate as in the previous month. The Jacuzzis for customers Manuel, Janna and Marion were completed and delivered during May at 75% above cost. 7. The total manufacturing costs to account for in the month of May is a. P16,000 c. P28,200 b. P24,000 a. P32,300 8. The billing price for the 3 Jacuzzis delivered amount to a. 13,982.50 cc. P35,332. b. 32,025 d. 49,350 Miller Co. manufacturing process results in the following units: Saleable 50,000 Unsaleable (normal) 2,000 Unsaleable (abnormal) 3,000 Total manufacturing costs totaled P99,000. 9, The entry to record the completion of the units is a. Finished goods 95 Manufacturing overhead pees Work in process 0b. Finished Goods (saleable) 90,000 Loss from Spoilage (abnormal) 5,400 Manufacturing overhead (normal) 3,600 Work in process 7 ¢. Finished goods 99,000 Work in process d. Finished goods 93,600 Loss from spoilage 5,400 Work in process 99,000 99,000 99,000 The AAA Manufacturing Company uses a job order costing system at its Davao plant. The plant has a Machining Department and a Finishing Department. Its job costing system has direct cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the Machining department, based on machine hours and the Finishing Department, based on labor cost). The 2016 budget for the plant is as follows: Ma Finishing Factory overhead P10,000,000 8,000,000 Direct labor cost 900,000. 4,000,000 Direct labor hours 30,000 160,000 Machine hours 200,000 33,000 During the month of December, the cost record for Job B4 shows the following: Machining | Fir Direct materials used P14,000 Direct labor cost 600 Direct labor hours 30 Machine hours 130 At the end of the year, the balances of the following are as follows: = Machining | Finishing Manufacturing overhead P11,200,000 P7,900,000 Direct labor cost 950,000 4,100,000 Machine hours 220,000 32,000oo 10. Assuming that Job B4 consisted of 200 units of product, the manufacturing co per unit of Job Bd is: a P33.75 ce. P105.50 b. P45 d, P139.25 11. The over or under applied manufacturing overhead for Davao plant as a whole ig a. 200,000 under applied b. 300,000 under applied c. P500,000 under applied d. P100,000 over applied Marikina Leatherworks, which manufactures leather goods, has three departments. The Assembly Department manufactures various leather products such as belts, purses, using an automated production process. The Saddle Department produces handmade saddles and uses very little machinery. ‘The Tanning Department produces leather and requires little in the way of labor or machinery, but it does require space and process time. Due to the different production processes in the three departments, the company uses three different cost drivers for the application of manufacturing overhead. The cost drivers and overhead rates are as follows: Departments Cost drivers Predetermined OH rate ‘Tanning Department — | Square feet of leather _ | P3 per sq, ft. Assembly department | Machine time P9 per mach. Hr. Saddle Department —_| Direct labor hour P4 per DL hr. Direct manufacturing costs per set of saddle and accessory is as follows: Direct materials (P12.50 per sq. feet); Direct labor (P8.00 per DLH). ‘The company’s saddle and accessory set consists of handmade saddle, two saddlebags, belt and a vest, all coordinated to match. Each set uses 10 sq, ft of leather from the Tanning Department, 3 machine hours in the Assembly Department, and 10 direct labor hours in the Saddle Department, Job No. 305 consisted of 200 saddles and accessory sets, 12. The manufacturing costs per set of saddle is a. 36.50 c. P117.50 b P205 d. P302 oe antla Machines uses two rates to apply overhead to jobs. One rate is based Eihe OPP ; the on mate = other on machine time. The following data relate toa Materials related OH pian Machine related OH 2 pi Cost of materials used on jobs 3200000 Machine hours 400,000 pata related to three jobs worked on in June follow Joe xX2- Material cost P42,000 | Direct labor cost P32,000 Machine hours 17,000 ‘Actual material related overhead was P118,400 and actual machine related overhead was P185,600. 13, The total amount of overhead variance is P15,500 overapplied a b. P15,500 underapplied ¢ P4.800 underapplied d. P10,700 underapplied TOM Manufacturing Company manufactures custom cabinets for modular and prefabricated housing companies. During the current year, an order of 1,000 customized cabinets was begun and assigned job no. 3635. Custom jobs are marked at 50% above cost. The total production costs of the 1,000 cabinets are as follows: Direct materials ‘292,000 Direct labor (3,000 H @ P52) Factory overhead, 45.00 per DL hours including allowance for spoilage of P2.80) Upon inspection, 100 of the cabinets were found to have defects. Cost of rework per unit include materials, P40 and % hour. Overhead is applied on the defective jobs at the same rate. 14. The total costs as basis for billing the customer is: a P591,850 c. 574,600 b. P583,450 d. P583,000 During June, Soltera Manufacturing Company incurred the following costs on Job 600 for the manufacture of 200 units of special household gadget:= Cost of production Direct materials Pisoo Direct labor 8,000 Overhead (150% of DL) an Reworking costs for 10 units Dicctanctrial P500 Direct labor 1600 Overhead (150% of DLH) 2,400 15. Assuming the rework was attributable to the (1) exacting specification ofthe jp, and (2) internal failure due to an employee error, the cost per unit of gadget is @) 2) a P140.00 — P155.50 b. 163.68 155.50 c 133.00 133.00 4. 155.50 133.00 Cometa Company uses job order costing system. During the 24 quarter of the current year, a job order was accepted for 2,000 units which was completed at the following costs: Direct materials Direct labor Overhead 1.5% of DL cost P50.00 per unit 24.00 per unit Final inspection revealed that 100 units are defective within normal level and are included in the predetermined overhead rate. These units can be reworked at P12,00 per unit of labor plus overhead at the predetermined rate. 16. The reworked costs should be charged to a. Work in Process 3,000 b. Loss from spoilage 3,000 ©. Manufacturing overhead 3,000 d. Work in Process 1,200 Manufacturing overhead 1,800 Ee Company manufactures quality wooden furniture sets. A job order from Ebie I — Company of Ohio, USA, for 5 sets of furniture was received. The cost information related to this order as at year end follows: * The WIP at the beginni i eee ginning of the year was 20% less than the WIP inventory