Name: Justine Irish G Ferrer.

Year & Section: Bsba 2-B

Assignment No. 3 - Computation of Costs (POST-ASSESSMENT TEST)

Solve the following given problems. Show your solutions.

1. Joy Corporation manufactures plastic coated metal clips. The following were among
Joy’s 2018 manufacturing costs:

Wages
Machine operators P200,000
Maintenance workers 30,000
Factory foreman 90,000

Materials used
Metal wire P500,000
Lubricant for oiling machinery 10,000
Plastic coating 380,000

Advertising expense 15,000

Delivery expense 6,000
Other indirect labor costs 120,000
Taxes, utilities and depreciation of factory building 100,000
Sales and office salaries 128,000
Factory rent 24,000
Machine maintenance and repair 10,000
Depreciation of machinery 10,000

Compute the direct labor costs.

Using information in no. 1, compute the direct material costs.

Using information in n. 1, compute the total manufacturing costs.

During the month of April, Lucena Company reported Direct Labor of P72,000 and Direct Labor
was equal to 60% of Prime Costs. If Total Manufacturing Cost during April amounted to
P170,000, how much is the total Factory Overhead?

Using information in no. 4, how much is the total Conversion Costs?