Problem 1)

1) Spoiled Goods Inventory 250.00

Factory Overhead Control 250.00
Work in Process 500.00

Accounts Receivable 14,250.00

Sales 14,250.00

Cost of Goods Sold 9,500.00

Work in Process 9,500.00

2) Spoiled Goods Inventory 250.00

Work in Process 250.00

Accounts Receivable 14,625.00

Sales 14,625.00

Cost of Goods Sold 9,750.00

Work in Process 9,750.00

Problem 2)
a) Materials Inventory 30,000.00
Accounts Payable 30,000.00

b) Accounts Payable 3,500.00

Materials Inventory 3,500.00

c) Work in Process 22,500.00

Factory Overhead Control 5,500.00
Materials Inventory 28,000.00

d) Payroll 46,200.00
Accrued Payroll 42,350.00
SSS Prem. Pay. 1,800.00
Philhealth Prem. Pay. 600.00
HDMF Prem. Pay. 550.00
Wtaxes Payable 900.00

Accrued Payroll 42,350.00

Cash 42,350.00

e) Work in Process 18,000.00

Factory Overhead Control 7,000.00
Selling Expenses 9,500.00
Administrative Expenses 11,700.00
Payroll 46,200.00

f) Factory Overhead Control 1,870.00

 Selling Expenses 1,220.00
Administrative Expenses 610.00
SSS Prem. Pay. 2,050.00
Philhealth Prem. Pay. 600.00
HDMF Prem. Pay. 550.00
EC Prem. Pay. 500.00

g) SSS Prem. Pay. 3,850.00

Philhealth Prem. Pay. 1,200.00
HDMF Prem. Pay. 1,100.00
EC Prem. Pay. 500.00
Cash 6,650.00

h) Accounts Payable 22,300.00

Cash 22,300.00

i) Work in Process 19,800.00

Factory Overhead Applied 19,800.00

j) Factory Overhead Control 1,100.00

Selling Expenses 660.00
Administrative Expenses 440.00
Cash 2,200.00

k) Factory Overhead Control 3,300.00

Cash 3,300.00

l) Finished Goods 46,000.00

Work in Process 46,000.00

m) Accounts Receivable 75,000.00

Sales 75,000.00

Cost of Goods Sold 40,000.00

Finished Goods Inventory 40,000.00

n) Sales Returns 10,500.00

Accounts Receivable 10,500.00

Finished Goods Inventory 5,600.00

Cost of Goods Sold 5,600.00

o) Cash 55,000.00
Accounts Receivable 55,000.00

p) Factory Overhead Control 900.00

Selling Expenses 400.00
Administrative Expenses 550.00
 Accum. Dep'n.Factory Machinery and Equipment 900.00
Accumulated Depreciation Store Furniture 400.00
Accumulated Depreciation Office Furniture 550.00

q) Factory Overhead Applied 19,800.00

Factory Overhead Control 19,670.00
Over Applied Factory Overhead 130.00

Over Applied Factory Overhead 130.00

Cost of Goods Sold 130.00

Problem 3)
EOQ = 80.00

Total Ordering Costs 625.00

Total Carrying Costs 625.00

Problem 4:
1) Annual Setup Cost 1,944.00

Annual Carrying Cost 600.00

2) EOQ 720.00

Annual Setup Cost 1,080.00

Annual Carrying Cost 1,080.00

Problem 5)
Using High and Low; 1,800 is considered to be outliers

b= 2.50

a= 6,750.00

Equation Y = 6,750 + 2.50X

Using Method of least Square

b= 143.75

a= 4,879.06

Equation Y = 4,879.06 + 143.75X

Year Smelting Costs Kilograms of Iron Smelted

 2011 12,000.00 50.20
2012 12,900.00 55.60
2013 13,500.00 60.00
2014 12,750.00 54.00
2015 14,100.00 64.40
Total P65,250 284.2

X Y XY X^2
2011 50.20 12,000.00 602,400.00 2,520.04
2012 55.60 12,900.00 717,240.00 3,091.36
2013 60.00 13,500.00 810,000.00 3,600.00
2014 54.00 12,750.00 688,500.00 2,916.00
2015 64.40 14,100.00 908,040.00 4,147.36
Total 284.20 65,250.00 3,726,180.00 16,274.76
Mean 71.05 16,312.50

Variable 86,850.00 143.75

604.16

Fixed 6,098.83

n*Sum-XY - (Sum-X * Sum-Y)

Variable Cost (b) =
n*Sum-X^2 - (Sum-X)^2

Fixed Cost = Y-Bar - (b * X-Bar)