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Jashmin S. Cosain (Prelim Exam Strategic Cost Management)
Jashmin S. Cosain (Prelim Exam Strategic Cost Management)
A. In this case, direct materials are the only item that qualifies as a throughput cost. Throughput
costing is a method that assigns only the unit-level of spending amounts for direct costs as the cost of
products or services.
C. Krell Corporation
Throughput-Costing Income Statement
For the Year Ended December 31, 20x1
PROBLEM 4
Beg. RM P50,000
Purchase 195,000
End. RM (55,000)
DM P190,000*
Beg. FG P60,000
COGM P585,000*
End. FG (50,000)
COGS P595,000
Manufacturing Company
Cost of Goods Manufactured
For Period Ending Month, Day, Year
Manufacturing Company
Cost of Goods Sold
For Period Ending Month, Day, Year
Less:
Ending Finished Goods Inventory (50,000)
Cost of Goods Sold P595,000
PROBLEM 5
Prime Costs:
Raw Material (Beginning) P 9,900
Purchases 40,800
Raw Material Available P50,700
Raw Material (Ending) (7,600)
Raw Material Used P 43,100
Direct Labor (23,600 x P13.75) 324,500
Prime Costs P367,600
Conversion Costs:
Direct Labor P324,500
Overhead 21,750
Conversion Costs P346,250
PROBLEM 6
Manufacturing Costs:
Raw Material, Nov. 1 P 17,400
Purchases 120,000
Raw Material Available P137,400
Raw Material, Nov. 30 (13,200)
Raw Material Used P124,200
Direct Labor (21,000 x P13) 273,000
Overhead:
Depr.-Factory Equipment P17,300
Repairs/Maintenance-Factory 7,400
Indirect Labor 11,200
Insurance-Factory 1,770
Factory Supplies Used 350
Total Overhead 38,020
Total Manufacturing Costs P435,220