PROBLEM 1

REQUIRED:
Direct materials cost
Materials, Beg 75,000.00
Purchases -
Total Available Materials 75,000.00
less Materials, End -
Materials used 75,000.00
less Indirect Materials used 7,500.00
Direct Materials Cost 67,500.00

Direct labor cost 97,000.00

indirect (7%) 6,790.00
90,210.00
Conversion Cost
Direct labor cost 90,210.00
Factory Overhead Cost 112,762.50
202,972.50

Total Goods Put into production

Direct Material Cost 67,500.00
Direct Labor Cost 90,210.00
Factory Overhead Cost 90210 x 125% 112,762.50
Total Manufacturing Cost 270,472.50
add: WIP, Beg. 25,500.00
295,972.50

Cost of goods manufactured

Direct Material Cost 67,500.00
Direct Labor Cost 90,210.00
Factory Overhead Cost 112,762.50
Total Manufacturing Cost 270,472.50
add: WIP, Beg. 25,500.00
Total Goods Put into production 295,972.50
less: WIP, End 27,000.00
268,972.50

PROBLEM 2
REQUIRED:
Prime costs
Materials, Beg 24,000.00
Purchases 100,000.00
Total Available Materials 124,000.00
less Materials, End 26,000.00
Materials used 98,000.00
less Indirect Materials used -
Direct Materials Cost 98,000.00
Direct Labor Cost 80,000.00
178,000.00

Conversion cost
Direct labor cost 80,000.00
Manufacturing overheads 120,000.00
200,000.00

Cost of goods manufactured

Materials, Beg 24,000.00
Purchases 100,000.00
Total Available Materials 124,000.00
less Materials, End 26,000.00
Materials used 98,000.00
less Indirect Materials used -
Direct Materials Cost 98,000.00
Direct Labor Cost 80,000.00
Factory Overhead Cost 120,000.00
Total Manufacturing Cost 298,000.00
add: WIP, Beg. 28,500.00
Total Goods Put into production 326,500.00
less: WIP, End 17,000.00
309,500.00
Cost of goods sold (normal)
Cost of goods manufatured 309,500.00
add: FG, Beg 45,000.00
Goods available for sale 354,500.00
less: FG, End 42,000.00
312,500.00

PROBLEM 3
REQUIRED:
Cost of goods manufactured
Materials, Beg -
Purchases 400,000.00
Total Available Materials 400,000.00
decrease in Direct Material 8,000.00
Materials used 392,000.00
less Indirect Materials used -
Direct Materials Cost 392,000.00
Direct Labor Cost 210,000.00
Factory Overhead Cost 140,000.00
Total Manufacturing Cost 742,000.00
add: WIP, Beg. -
Total Goods Put into production 742,000.00
decrease in WIP 5,000.00
737,000.00
Cost of goods sold
Cost of goods manufatured 737,000.00
increase in fg 12,000.00
Goods available for sale 749,000.00
less: FG, End -
749,000.00
Net Income for 2019
Sales 1,200,000.00
less: Cost of goods sold 749,000.00
Gross income 451,000.00
less: OPEX
Marketing expenses 5% of sales 60,000.00
Administrative expenses 1% of sales 12,000.00
379,000.00

PROBLEM 4
REQUIRED:
Cost of goods manufactured
Materials, Beg -
Purchases 1,200,000.00
Total Available Materials 1,200,000.00
less Materials, End 450,000.00
Materials used 750,000.00
less Indirect Materials used 140,000.00
Direct Materials Cost 610,000.00
Direct Labor Cost 450,000.00
Factory Overhead Cost 540,000.00
 Total Manufacturing Cost 1,600,000.00
add: WIP, Beg. -
Total Goods Put into production 1,600,000.00
less:WIP, End -
1,600,000.00

PROBLEM 5
REQUIRED:
Total Manufacturing cost
Materials, Beg -
Purchases 120,000.00
Total Available Materials 120,000.00
less Materials, End 8,000.00
Materials used 112,000.00
less Indirect Materials used -
Direct Materials Cost 112,000.00
Direct Labor Cost 80,000.00
Factory Overhead Cost 100,000.00
Total Manufacturing Cost 292,000.00

at a uniform rate of P6.40/hour)

8.00 per direct labor hour

Cost of goods manufactured

Materials, Beg -
Purchases 120,000.00
Total Available Materials 120,000.00
less Materials, End 8,000.00
Materials used 112,000.00
less Indirect Materials used -
Direct Materials Cost 112,000.00
Direct Labor Cost 80,000.00
Factory Overhead Cost 100,000.00
Total Manufacturing Cost 292,000.00
add: WIP, Beg. -
Total Goods Put into production 292,000.00
less: WIP, End 8,000.00
284,000.00
Cost of goods sold
Cost of goods manufatured 284,000.00
add: FG, Beg 8,000.00
Goods available for sale 292,000.00
 less: FG, End -
292,000.00
Net Income for 2019
Sales 450,000.00
less: Cost of goods sold 292,000.00
Gross income 158,000.00
less: OPEX
Marketing Administrative expenses 10% of sales
45,000.00
113,000.00

PROBLEM 6
REQUIRED:
Materials Purchase
Materials, Beg 0.00
Materials Purchase 105000.00
Total Available Materials 105000.00
increase in materials 15000.00
Cost of materials put int process 120000.00

Total Manufacturing Cost

Cost of goods manufactured
Materials, Beg 0.00
Purchases 105000.00
Total Available Materials 105000.00
increase in materials 15000.00
Materials used 90000.00
less Indirect Materials used 0.00
Direct Materials Cost 90,000.00
Direct Labor Cost 150,000.00
Factory Overhead Cost 144,000.00
Total Manufacturing Cost 384,000.00
add: WIP, Beg. -
Total Goods Put into production 384,000.00
decrease in work in process 24,000.00
360,000.00
Cost of goods sold
Cost of goods manufatured 360,000.00
increase in fg 6,000.00
Goods available for sale 366,000.00
less: FG, End -
366,000.00