June Maylyn D.

Marzo
BSAIS 2nd year
Homework: Exercise 2.4

Problem No. 1
Completed Completed Incomplete Incomplete
Job 204 Job 205 Job 206 Job 207 Total
In Process
June 1
Direct 184,000 115,000
Materials
Direct Labor 70,000 50,000
Applied FOH 42,000 30,000
296,000 195,000 491,000

Cost in June
Direct 38,000 44,000 110,000 135,000 327,000
Materials
Direct Labor 20,000 30,000 34,000 26,000 110,000
Applied FOH 10,000 15,000 17,000 13,000 55,000
(50% DL Cost)
68,000 89,000 161,000 174,000 492,000

Direct 327,000
Materials
Direct Labor 110,000
Applied FOH 55,000
Total 492,000
Manufacturin
g Cost
Add: WIP, 491,000
beginning
Total Cost of 983,000
Goods Put
Into Process
Less: WIP, end (335,000)
Cost of Goods 648,000
Manufactured

Problem No.2
A. Raw Materials 2,000,000
Cash 2,000,000
B. Work in Process 1,400,000
Raw Materials Inventory 1, 400, 000
C. Manufacturing Overhead 200,000
Raw Materials Inventory 200,000
D. Work in Process 1,500,000
Cash 1,500,000
 E. Manufacturing Overhead 500,000
Cash 500,000
F. Manufacturing Overhead 1,250,000
Raw Material Inventory 1,250,000
G. Manufacturing Overhead 15,000
Accounts payable 15,000
H. Finish Good Inventory 4,400,000
Working Process 4,400,000
Cost of Goods Sold 1,000,000
Finished Goods Inventory 1,000,000
Problem No. 3
A. Predetermined Overhead Rate = Estimated Overhead Cost/Estimated Direct Labor Cost
562500/450000 = 1.25% of Direct Labor Cost
B. Actual Manufacturing Overhead 540,000
Less: Applied Overhead 47,000x1.25 (587,500)
Under Applied Overhead = (47,500)
C. Debits to WIP 1680,000
Less: DL 450,000
Applied Overhead 587,000
= 642,500
D. Direct Material Used 15000
Direct Labor 3500
Total 18,500
Applied Overhead @125 % 43750
= 93,750
Problem No. 4
Product Orange Drink Cola Drink Soda Water WIP Inventory
DM 400 429 200 1029
DL 150 350 50 550
Overhead 360 171 80 611
Total Drink Cost P910 P950 P330 P 2190

Problem No. 5
A. Predetermined –OH rate= 480,000/12,000hrs= 40.00/hrs
B. Total Amount of Overhead Charged: 460,000= 11,500x40.00
C. Under-applied for the year: 15,000= 475,000-460,000
D. Job no.902
100 units= 41.00/per hour= 4,100
12,300/5,000= 3,000x4,100= 12,300