L1- POST TEST- JOB ORDER COSTING

1.) a. If overhead is applied on the basis of DLHs, what predetermined OH rate was in effect
during the company’s 2019–2020 fiscal year?
Applied Overhead ₱ 127,680
Divided by: direct labor hours 7,600
Predetermined Overhead Rate ₱ 16.80

b. What was the average direct labor rate per hour?

Direct Labor Costs ₱ 159,600
Divided by: direct labor hours 7,600
Direct labor rate per hour ₱ 21.00

c. What amount of direct material cost was in the beginning balance of WIP Inventory?
Work in Process Inventory, beginning balance ₱ 916,650
Less: Direct labor cost contained in WIP Inventory, beg.
Direct labor hours 15,200
Multiplied by direct labor rate 21 (319,200)
Direct material cost in beginning WIP Inventory ₱ 597,450

d. What was the balance in WIP Inventory at the end of January?

Direct Material ₱ 73,250
Direct labor cost : Direct labor hours 2,850
Multiplied by direct labor rate 21 59,850
WIP Inventory, ending ₱ 133,100

e. What was the total cost of jobs manufactured in January?

Beginning WIP Inventory ₱ 916,650
Add: Direct Materials ₱ 589,670
Direct Labor 159,600
Applied Overhead 127,680 ₱ 876,950
Total ₱ 1,793,600
Less: Ending WIP Inventory (133,100)
Total cost of jobs manufactured ₱ 1,660,500

2.) a. What was the total cost of Job #920 as of the end of June 2020?
Direct Material ₱ 2,850
Direct Labor 800
Applied Overhead:
POHR ₱ 17
Multiplied by: DLH (P800/20 per DLH) 40 680
Total cost of Job #920 ₱ 4,330

b. What was the cost of goods manufactured for June 2020?

Beginning WIP Inventory:
Direct material ₱ 8,250
Direct Labor 500
Applied Overhead:
POHR ₱ 17
Multiplied by: DLH 25 425
 ₱ 9,175
Add: Direct Materials ₱ 21,650
Direct Labor 6,300
Applied Overhead:
POHR ₱ 17
(P6,300/20 per
Multiplied by: DLH DLH)= 315 5,355 ₱ 33,305
Total ₱ 42,480
Less: Ending WIP Inventory (4,330)
Cost of jobs manufactured ₱ 38,150

c. If actual overhead for June was P5,054, was the overhead underapplied or overapplied
for the month? By how much?
Actual overhead ₱ 5,054
Applied overhead (5,355)
Overappliead ₱ 301

3.)
How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?
Finished Goods Inventory, beginning ₱ 33,000
Cost of goods manufactured:
Work in Process Inventory, beginning ₱ 56,000
Add: Direct material ₱ 23,000
Direct Labor 58,000
Manufacturing overhead applied
to WIP 92,000 173,000
Total manufacturing costs 229,000

Less: Work in Process Inventory, ending (69,000) ₱ 160,000

Goods available for sale ₱ 193,000
Less: Finished Goods Inventory, ending (36,000)
Unadjusted cost of goods sold ₱ 157,000