1

CHAPTER 3

Multiple choices - Theoretical

1. d 5. b 9. a
2. a 6. d 10. d
3. a 7. b 11. b
4. d 8. a 12. d

Multiple Choices – Computational

1. (a)

Total material requisitions P36,926

Less: Returned materials 477
Material cost P36,440

2. (a)

3. (a)

Beginning balance 15,980 units

Purchases 6,600
Issued (13,050)
Ending inventory 9,530 units
Unit price x P6.80
Cost of ending inventory P9,546.80

4. (a)

5. (a)
 2

SOLUTIONS TO PROBLEMS

Problem 3-1

MATERIALS LEDGER CARD

Materials W – 64 Reorder Point 600 units

Number Reorder Quantity 1,200 units

RECEIVED ISSUED BALANCE

Date Ref. Units Price Amount Units Price Amounts Units Price Amounts
June 1 Bal 560 P4,480
4 PO310 1,300 8.00 10,400 1,860 14,880
10 MR41 250 8.00 2,000 1,610 12,880
15 MR49 1,150 8.00 9,200 460 3,680
16 RM48 (220) 8.00 (1,760) 680 5,440
19 MR58 120 8.00 960 560 4,480
23 PO351 1,300 8.00 10,400 1,860 14,880
27 RSO24 (100) 8.00 (800) 1,760 14,080
29 MR61 620 8.00 4,960 1,140 9,120
30 RM56 (150) 8.00 (1,200) 1,290 10,320

Problem 3-2

1. MATERIALS REQUISITIONS JOURNAL

For the Month of May , 2010 Page 2

Work in Process FO Control Materials

Date Req. No. Job No./Dept ( DR 122) (DR 501) (CR 121)
May 8 41 25 26,150 26,150
14 26 26 49,600 49,600
21 43 Finishing 16,600 16,600
24 44 26 32,100 32,100
107,850 16,600 124,450

VOUCHERS REGISTER

For the Month of May , 2010 Page 20

Paid Vouchers Other Accounts

Voucher Check Payable Materials A/C
Date No. Payable To Date No. CR 201 DR 121 No. Debit Credit

May 4 051 Shaft Supply 58,100 58,100

17 052 Ace Corp. 56,400 56,400
26 053 Handyman 39,800 39,800
29 RSO 28 Handyman (3,900) (3,900)
150,400 150,400
 3

2. MATERIALS

POST. DR.
DATE EXPLANATION REF DEBIT CREDIT BALANCE CR.
May 1 Balance 155,500 DR
31 VR 20 150,400 305,900 DR
31 MR2 124,450 181,450 DR

Problem 3-3, 3-4 and 3-5

MATERIALS LEDGER

Materials Braces Reorder Point 6,000 units

Number BR 10 Reorder Quantity 13,000 units

RECEIVED ISSUED BALANCE

Date Ref. Units Price Amount Units Price Amount Units Price Amount
Dec. 1 Bal. 5,485 3.50 19,197.50
20 PO705 13,000 3.50 45,500 18,485 3.50 64,697.50

Materials Side Rail 6” Reorder Point 3,000 units

Number RA-6 Reorder Quantity 8,000 units

RECEIVED ISSUED BALANCE

Date Ref. Units Price Amount Units Price Amount Units Price Amount
Dec. 1 Bal. 1,970 11.50 22,655.00
1 R084 300 11.50 3,450 1,670 19,205.00
20 R087 300 11.50 3,450 1,370 15.755.00

Materials Side Rail 8” Reorder Point 1.900 units

Number RA-8 Reorder Quantity 3,850 units

RECEIVED ISSUED BALANCE

Date Ref. Units Price Amount Units Price Amount Units Price Amount
Dec. 1 Bal. 2,025 14.00 28,350.00
10 R015 250 14.00 3,500 1,775 24,850.00
22 R018 200 14.00 2,800 1,575 22,050.00
28 R019 300 14.00 4,200 1,275 17,850.00
 4

Problems 3-3, 3-4 and 3-5 (continued):

Materials Steps 4”x12” Reorder Point 2,500 units

Number ST-12 Reorder Quantity 6,000 units

RECEIVED ISSUED BALANCE

Date Ref. Units Price Amount Units Price Amount Units Price Amount
Dec. 1 Bal. 1,910 4.50 8,595.00
1 R084 150 4.50 675.00 1,760 7,920.00
6 PO073 6,000 4.50 27,000 7,760 34,920.00
10 R085 125 4.50 562.50 7,635 34,357.50
20 R087 150 4.50 675.00 7,485 33,682.50
22 R088 100 4.50 450.00 7,385 33,232.50
27 RSO8 (800) 4.50 (3,600) 6,585 29,632.50
28 R089 150 4.50 675.00 6,435 28,957.50

Materials Steps 4”x15” Reorder Point 2,500 units

Number ST-15 Reorder Quantity 4,600 units

RECEIVED ISSUED BALANCE

Date Ref. Units Price Amount Units Price Amount Units Price Amount
Dec. 1 Bal. 1,700 6.00 10,200.00
1 R084 300 6.00 1,800 1,400 8,400.00
6 PO073 4,600 6.00 27,600 6,000 36,000.00
10 R085 375 6.00 2,250 5,625 33,750.00
20 R087 300 6.00 1,800 5,325 31,950.00
21 RM84 (25) 6.00 (150) 5,350 32,100.00
22 R088 300 6.00 1,800 5,050 30,300.00
28 R089 450 6.00 2,700 4,600 27,600.00

Materials Tops 6”x12” Reorder Point 2,400 units

Number TO612 Reorder Quantity 5,000 units

RECEIVED ISSUED BALANCE

Date Ref. Units Price Amount Units Price Amount Units Price Amount
Dec. 1 Bal. 1,440 7.50 10,800.00
1 R084 150 7.50 1,125 1,290 9,675.00
10 R085 125 7.50 937 1,165 8,737.50
16 PO074 5,000 7.50 37,500 6,165 46,237.50
20 R087 150 7.50 1,125 6,015 45,112.50
22 R088 100 7.50 750 5,915 44,362.50
28 R089 150 7.50 1,125 5,765 43,237.50

Materials Washers Reorder Point 300 boxes

Number W-125 Reorder Quantity 940 boxes

RECEIVED ISSUED BALANCE

Date Ref. Units Price Amount Units Price Amount Units Price Amount
Dec. 1 Bal. 675 8.00 5,400
1 R086 25 8.00 200 650 5,200
 5

Problem 3-3 (continued)

2. MATERIALS REQUISITIONS

DELIVER TO Welding Dept. Material Requisition No. 084

CHARGE: ACCT, 122 DATE 12/1/2010
JOB 72

QUANTITY MAT. NO. DESCRIPTION UNIT PRICE AMOUNT

300 RA – 6 Side rails, 6” P 11.50 P 3,450

150 ST – 12 Steps, 4” x 12” 4.50 675
300 ST – 15 Steps, 4” x 15” 6.00 1,800
150 TO -612 Tops, 6” x 12” 7.50 1,125
P 7,050

Entered On Entered In Entered on Job Entered on Dept.

Materials Ledger Card Materials Req. Journal Cost Sheet Overhead Analysis
Sheet

(Student’s Initial) (Student’s Initial) (Student’s Initial) (Student’s Initial)

Approved By: Delivered by: Received By:

DELIVER TO Welding Dept. Material Requisition No. 085

CHARGE: ACCT, 122 DATE 12/10/2010
JOB 73

QUANTITY MAT. NO. DESCRIPTION UNIT PRICE AMOUNT

250 RA - 8 Side rails, 8” P 14.00 P 3,500.00

125 ST – 12 Steps, 4” x 12” 4.50 562.50
375 ST – 15 Steps, 4” x 15” 6.00 2,250.00
125 TO -612 Tops, 6” x 12” 7.50 937.50
P 7,250.00

Entered On Entered In Entered on Job Entered on Dept.

Materials Ledger Card Materials Req. Journal Cost Sheet Overhead Analysis
Sheet

(Student’s Initial) (Student’s Initial (Student’s Initial) (Student’s Inititial)

Approved By: Delivered by: Received By:

 6

Problems 3-3 and 3-4 (continued)

JOB COST SHEET

Customer: Chico Supply Co. Job 72
Description: Aluminum Doors Date Started 12/1/2010
Quantity: 300 Date Completed

MATERIALS DIRECT LABOR MFG. OVERHEAD APPLIED

REQ. REF. REF.
DATE NO. AMOUNT DATE NO. HRS. AMOUNT DATE NO. RATE AMOUNT
12/1 R084 7,050
12/10 R087 7,050

JOB COST SHEET

Customer: Apple Const. Supply Co. Job 73
Description: Aluminum Ladders 6” Date Started 12/10/2010
Quantity: 250 Date Completed

MATERIALS DIRECT LABOR MFG. OVERHEAD APPLIED

REQ. REF. REF.
DATE NO. AMOUNT DATE NO. HRS. AMOUNT DATE NO. RATE AMOUNT
12/10 R085 7,250
12/21 RM84 (150)
12/22 R088 5,800

Problem 3-5 (continued)

JOB COST SHEET

Customer: Santol Co. Job 74
Description: Aluminum Ladders 8” Date Started 12/28/2010
Quantity: 300 Date Completed

MATERIALS DIRECT LABOR MFG. OVERHEAD APPLIED

REQ. REF. REF.
DATE NO. AMOUNT DATE NO. HRS. AMOUNT DATE NO. RATE AMOUNT
12/28 R089 8,700
 7

Problem 3-4 (continued)

RETURNED MATERIALS REPORT

CREDIT: ACCT. Returned Materials Report

Job No. 73 No. 84
Date 12/21/2010
Dept.

QUANTITY MAT. NO. DESCRIPTION UNIT COST AMOUNT

25 ST - 15 Steps, 4” x 15” 6.00 150.00

REASON FOR RETURN

Entered on Entered on Entered on Received by

Materials Ledger Card Job Cost Sheet Dept. Overhead
Analysis Sheet
(Student’s Initial) (Student’s Initial)
 8

Problem 3-5 (continued)

1. MATERIALS REQUISITIONS

DELIVER TO Welding Dept. Material Requisition No. 088

CHARGE: ACCT, 122 DATE 12/22/2010
JOB 73

QUANTITY MAT. NO. DESCRIPTION UNIT PRICE AMOUNT

200 RA – 8 Side rails, 8” P 14.00 P 2,800.00

100 ST – 12 Steps, 4” x 12” 4.50 450.00
300 ST – 15 Steps, 4” x 15” 6.00 1,800.00
100 TO -612 Tops, 6” x 12” 7.50 750.00
P 5,800.00

Entered On Entered In Entered on Job Entered on Dept.

Materials Ledger Card Materials Req. Journal Cost Sheet Overhead Analysis
Sheet

(Student’s Initial) (Student’s Initial) (Student’s Initial) (Student’s Initial)

Approved By: Delivered by: Received By:

DELIVER TO Welding Dept. Material Requisition No. 089

CHARGE: ACCT, 122 DATE 12/28/2010
JOB 74

QUANTITY MAT. NO. DESCRIPTION UNIT PRICE AMOUNT

300 RA - 8 Side rails, 8” P 14.00 P 4,200.00

150 ST – 12 Steps, 4” x 12” 4.50 675.00
450 ST – 15 Steps, 4” x 15” 6.00 2,700.00
150 TO -612 Tops, 6” x 12” 7.50 1,125.00
P 8,700.00

Entered On Entered In Entered on Job Entered on Dept.

Materials Ledger Card Materials Req. Journal Cost Sheet Overhead Analysis
Sheet

(Student’s Initial) (Student’s Initial (Student’s Initial) (Student’s Inititial)

Approved By: Delivered by: Received By:

 9

Problem 3-5 (continued)

4. MATERIALS
POST. DR.
DATE EXPLANATION REF DEBIT CREDIT BALANCE CR.
Dec. 1 Balance 105,197.50 DR
31 VR 12 137,600 242,797.50 DR
31 VR 12 3,600 239,197.50 DR
31 MR12 36,050 203,147.50 DR
31 RM12 150 203,297.50 DR

5. Star Aluminum, Inc.

Schedule of Materials
December 31, 2010

Braces P64,697.50
Side rails, 6” 15,755.00
Side rails, 8” 17,855.00
Steps, 4” x 12” 28,957.50
Steps, 4” x 15” 27,600.00
Tops, 6” x 12” 43,237.50
Washers, 1/4” flat (Box of 100) 5,200.00
Total P203,297.50

Problem 3-4 (continued)

DEPARTMENTAL OVERHEAD ANALYSIS SHEET

Department Welding Month of December , 2010

INDIRECT INDIRECT OTHER

DATE REF. TOTAL MATERIALS LABOR REPAIRS ITEMS AMOUNT
Dec..18 R086 2,000 2,000

Problem 3-3, 3-4 and 3-5 (continued)

VOUCHERS REGISTERS

For the Month of December , 2010 Page 12

Paid Vouchers Other Accounts

Voucher Check Payable Materials A/C
Date No. Payable To Date No. CR 201 DR 121 No. Debit Credit

Dec. 6 101 Doors Dist.,Inc. 54,600 54,600

16 102 Don Jose, Inc. 37,500 37,500
20 103 Pedro Hardware 45,500 45,500
27 104 King Dev., Inc. 7,650 201 11,250
121 3,600
145,250 137,600 11,250 3,600
 10

Problem 3-3, 3-4 and 3-5 (continued)

MATERIALS REQUISITIONS JOURNAL

For the Month of December , 2010 Page 12

Work in Process FO Control Materials

Date Req. No. Job No./Dept ( DR 122) (DR 501) (CR 121)
Dec. 1 084 72 7,050 7,050
10 085 73 7,250 7,250
18 086 Assembly 200 200
20 087 72 7,050 7,050
22 088 73 5,800 5,800
28 089 74 8,700 8,700
35,850 200 36,050

RETURNED MATERIALS JOURNAL

For the Month of December , 2010 Page 12

Work in Process FO Control Materials

Date Req. No. Job No./Dept ( DR 122) (DR 501) (CR 121)
Dec. 21 084 73 150 150
 11

Problem 3-4 (continued)

1. MATERIALS REQUISITIONS

DELIVER TO Assembly Dept. Material Requisition No. 086

CHARGE: ACCT, 122 DATE 12/18/2010
JOB

QUANTITY MAT. NO. DESCRIPTION UNIT PRICE AMOUNT

25 boxes W – 125 Washers, ¼” flat (Box of 100) 8.00 P200

Entered On Entered In Entered on Job Entered on Dept.

Materials Ledger Card Materials Req. Journal Cost Sheet Overhead Analysis
Sheet

(Student’s Initial) (Student’s Initial) (Student’s Initial) (Student’s Initial)

Approved By: Delivered by: Received By:

DELIVER TO Assembly Dept. Material Requisition No. 087

CHARGE: ACCT, 122 DATE 12/20/2010
JOB 72

QUANTITY MAT. NO. DESCRIPTION UNIT PRICE AMOUNT

300 RA – 6 Side rails, 6” P 11.50 P 3,450

150 ST – 12 Steps, 4” x 12” 4.50 675
300 ST – 15 Steps, 4” x 15” 6.00 1,800
150 TO -612 Tops, 6” x 12” 7.50 1,125
P 7,050

Entered On Entered In Entered on Job Entered on Dept.

Materials Ledger Card Materials Req. Journal Cost Sheet Overhead Analysis
Sheet

(Student’s Initial) (Student’s Initial) (Student’s Initial) (Student’s Initial)

Approved By: Delivered by: Received By: