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

1 Nov-14 Work in Process 10,400.00

Salaries and Wages Payable

2 Nov-14 Work in Process 8,000.00

Factory Overhead 2,400.00
Salaries and Wages Payable

Basic rate 200 x 40 8,000.00

Overtime 200 x 1.5 x 8 2,400.00
Total 10,400.00
 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
DATE QTY UNIT PRICE AMOUNT QTY UNIT PRICE
Mar 01 1000 125 125,000

Mar 05 400 125

Mar 09 600 140 84,000

Mar 13 600 125

250 140
Mar 22 200 145 29,000

Mar 29 250 140

1800 238,000 1,500

MATERIAL M-9 LEDGER CARD ( Moving Average method)

RECEIPTS ISSUES
DATE QTY UNIT PRICE AMOUNT QTY
Mar 01 1000 125 125,000
Mar 05 400 125.00
Mar 09 600 140 84,000
Mar 13 850 132.50
Mar 22 200 145 29,000
Mar 29 250 137.05
1800 238,000 1,500

Problem 2

EOQ = √ (2 x Demand per year x Cost per order)/ carrying cost)

 √ [ (2 x 60,000 x 900)/1,200]

√ (108000000/1,200)
√ 90,000.00

= 300 units

Problem 3

Voucher Register
DATE SUPPLIER VOUCHER Voucher Payable Account
NO. Cr Title
04-Jun Shell Supply Compan 51 58,100.00 Materials

17-Jun Ace Corporation 52 56,400.00 Materials

26-Jun Ace Hardware 53 39,800.00 Materials

29-Jun Voucher Payable

Materials

Material Requisition Journal

08-Jun Work in Process 26,150.00

Materials 26,150.00

14-Jun Work in Process 49,600.00

Materials 49,600.00
 21-Jun Factory overhead 16,600.00
Materials 16,600.00

24-Jun Work in Process 32,100.00

Materials 32,100.00

Problem 4

a Let X be estimated annual usage

7000 = √ 2 (X) 50
4

7000 ² = [2 (X) 50 ]²
4

49,000,000 25x
25 25

x= 1,960,000

b Number of orders placed

Annual requirement / EOQ

1,960,000
7000

280 units
FO method)
SSUES BALANCE
AMOUNT QTY UNIT PRICE AMOUNT
1,000 125.00 125,000

50,000 600 125.00 75,000

600 140.00 84,000
1,200 159,000

75,000 350 140.00 49,000

35,000
200 145.00 29,000
550 78,000

35,000 100 140.00 14,000

200 145.00 29,000
300 43,000
195,000

Moving Average method)

SSUES BALANCE
AMOUNT QTY UNIT PRICE AMOUNT
1000 125.00 125,000
50,000 600 125.00 75,000
1,200 132.50 159,000
112,625 350 132.50 46,375
550 137.05 75,375
34,261 300 137.05 41,114
196,886
Dr Cr
58,100.00

56,400.00

39,800.00

3,900.00
3,900.00