Problem 1 Journal entries

Sep-15 Payroll Summary 32,500.00

Social Security Premium Payable
Philhealth Premium Payable
PagIBIG Premium payable
Employees Income Tax payable
Salaries and Wages Payable

Sept 15 Salaries and Wages Payable 24,611.00

Cash

Sep-30 Payroll Summary 83,200.00

Social Security Premium Payable
Philhealth Premium Payable
PagIBIG Premium payable
Employees Income Tax payable
Salaries and Wages Payable

Sep-30 Salaries and Wages Payable 75,026.00

Cash

Sep-30 Work in Process 46,250.00

Payroll Summary

Factory Overhead 19,460.00

Payroll Summary

Sep-30 Social security taxes 4,073.00

Philhealth taxes 985.00
PagIBIG Contribution 1,579.00
ECC 1,600.00
Accounts Payable

Problem 2

1 Dec-15 Payroll Summary 112,000.00

Social Security Premium Payable
Philhealth Premium Payable
PagIBIG Premium payable
Employees Income Tax payable
Salaries and Wages Payable
2 Salaries and Wages Payable 93,952.00
Cash

3 Social Security taxes 5,600.00

Philhealth taxes 1,400.00
PagIBIG Contribution 2,240.00
ECC 1,120.00
Accounts Payable

4 Social Security Premium Payable 16,680.00

Philhealth Premium Payable 2,560.00
PagIBIG Premium payable 4,672.00
Employees Income Tax payable 9,488.00
Cash

Accounts Payable 10,360.00

Cash

Problem 3
Regular rate 200 x 40 8,000.00
Overtime 200 x 1.5 x 8 2,400.00
10,400.00

1 Nov-14 Work in Process 10,400.00

Salaries and Wages Payable

2 Nov-14 Work in Process 8,000.00

Factory Overhead
Salaries and Wages Payable

Problem 4
 2,015.00
487.00
487.00
4,900.00
24,611.00

24,611.00

2,058.00
498.00
498.00
5,120.00
75,026.00

75,026.00

46,250.00

19,460.00

8,237.00

4,920.00
1,400.00
2,240.00
9,488.00
93,952.00
93,952.00

10,360.00

33,400.00

10,360.00

10,400.00

10,400.00
 QUIZ 2
Problem 1
Direct Materials Inventory, beg.
Add: Purchases 80,000.00
DM Available for use 80,000.00
Less: DM Inventory, end (given) 20,000.00
DM used 60,000.00

Direct Labor (1,000/40 =25 x 940 hrs) 23,500.00

FOH 50,000.00

Manufacuring Cost 148,000.00

Add: WIP, beg (given) 2,000.00
Cost of goods placed in process 150,000.00
Less: WIP, end 3,000.00
Cost of goods manufactured 147,000.00
Add: Finished goods, beg (given) 25,000.00
Cost of goods completed 172,000.00
Less: Finished goods, end (given) 7,000.00
Cost of goods sold (given) 165,000.00

1 Materials puchased during April

Accouns Payable, 4/30 12,000.00

Add: Payments during April 78,000.00
90,000.00
Less: Accounts Payable, 4/1 10,000.00
Purchases 80,000.00

2 Overhead Applied during April

Budgeted Factory Overhead 750,000.00

Machine hours 15,000.00

Applied Overhead rate 50.00 per machine hour

x Actual Machine hours during April x1,000 machine hours
Applied Factory Overhead 50,000.00

Page 5
 QUIZ 2

3 Direct Materials used during April

Manufacturing Cost 148,000.00

Less:
Applied Factory overhead - 50,000.00
Direct Labor (1,000/40 =25 x 940 hrs) - 23,500.00
Direct Materials used 74,500.00

4 Over applied or under applied overhead

Actual Overhead - Applied Overhead

55,000 - 50,000 = 5,000.00 under applied

5 Cost of goods completed during April

Cost of goods sold (given) 165,000.00

Add: Finished goods, end (given) 7,000.00
Cost of goods completed 172,000.00

6 Work in Process, 4/30

Work unfinished
Direct Materials 2,000.00
Direct Labor 1,000.00
3,000.00

7 Direct Materials used 74,500.00

Add: Direct Material, 4/30 (given)' 20,000.00
Direct Material available for use 94,500.00
Less: Purchases 80,000.00
Add: Direct Material, 3/31 14,500.00

Page 6
 QUIZ 2
Problem 2

Materials Inventory, beg. 15,000.00

Add: Purchases 33,000.00
Materials Available for use 48,000.00
Less: Materials Inventory, end 19,000.00
Materials used 29,000.00

Direct Labor 42,000.00

FOH 40,000.00

Manufacuring Cost 110,000.00

Add: WIP, beg (given) 40,000.00
Cost of goods placed in process 150,000.00
Less: WIP, end 30,000.00
Cost of goods manufactured 120,000.00
Add: Finished goods, beg 70,000.00
Cost of goods available for sale 190,000.00
Less: Finished goods, end 50,000.00
Cost of goods sold 140,000.00

Cost of goods manufactured 120,000.00

Add: Finished goods, beg 70,000.00
Cost of goods available for sale 190,000.00
Less: Finished goods, end 50,000.00
Cost of goods sold 140,000.00

2 Jounal entries

a Materials 33,000.00
Accounts Payable 33,000.00

b Work in Process 28,000.00

Manufacturing Overhead 1,000.00
Materials 29,000.00

Page 7
 QUIZ 2

c Payroll Clearing 49,000.00

Salaries and Wages Payable 49,000.00

d Work in Process 42,000.00

Manufacturing Overhead 7,000.00
Payroll Clearing 49,000.00

e Finished goods 120,000.00

Work in Process 120,000.00

f
Production Cost 110,000.00
Mark up 50% 55,000.00
Sales 165,000.00

Problem 3

1 Job 823

Materials 32,500.00
Direct Labor 35,000.00
Factory Overhead 35,000.00
102,500.00

Job 751

Materials 59,000.00
Direct Labor 30,000.00
Factory Overhead 3,000.00
92,000.00

a Materials Account

Purchased Materials 100,000.00

Page 8
 QUIZ 2
Less: Transferred to Work in Process 94,000.00
6,000.00
Add: Returned from WIP 2,500.00
8,500.00

b Work in Process Account

Materials 94,000.00
Direct Labor 65,000.00
Factory Overhead 65,000.00
224,000.00
Returned to Materials inventory (2,500.00)
Job 823 transferred to finished goods (102,500.00)
WIP balance 119,000.00

c Cost of goods sold

Materials 91,500.00
Direct Labor 65,000.00
Factory Overhead 65,000.00
Manufacturing Cost 221,500.00
Less: Work in Process, end 119,000.00
Cost of goods available for sale 102,500.00
Less: Finished goods, end -
Cost of goods sold 102,500.00

Page 9
Problem 1

MATERIAL M-9 LEDGER CARD ( FIFO method)

RECEIPTS ISSUES BALANCE
DATE QTY UNIT PRICE AMOUNT QTY UNIT PRIC AMOUNT QTY
Mar 01 1000 125 125,000 1,000

Mar 05 400 125 50,000 600

Mar 09 600 140 84,000 600
1,200

Mar 13 600 125 75,000 350

250 140 35,000
Mar 22 200 145 29,000 200
550

Mar 29 250 140.00 35,000 100

200
300
1800 238,000 1,500 195,000

MATERIAL M-9 LEDGER CARD ( Moving Average method)

RECEIPTS ISSUES BALANCE
DATE QTY UNIT PRICE AMOUNT QTY UNIT PRIC AMOUNT QTY
Mar 01 1000 125 125,000 1,000
Mar 05 400 125 50,000 600
Mar 09 600 140 84,000 1,200
Mar 13 850 133 112,625 350
Mar 22 200 145 29,000 550
Mar 29 250 137.05 34,261 300
1800 238,000 1,500 196,886

Problem 2

EOQ = Squaroot of ((2 x Demand per year x Cost per order)/ carrying cost)
 2 x 60,000 x 900
1200

108,000,000
1,200.00

90,000.00

300 units

Problem 3
 BALANCE
UNIT PRIC AMOUNT
125.00 125,000

125.00 75,000
140.00 84,000
159,000

140.00 49,000

145.00 29,000
78,000

140.00 14,000
145.00 29,000
43,000

d)
BALANCE
UNIT PRIC AMOUNT
125.00 125,000
125.00 75,000
132.50 159,000
132.50 46,375
137.05 75,375
137.05 41,114