Cost Accounting & Control 1

PROBLEM 1

Direct Materials

Purchases 430,000

Less: Increase in raw materials 15,000 415,000

Direct Labor 200,000

Factory Overhead 300,000

Manufacturing Cost 915,000

Add: Decrease in Finished Goods 35,000

Cost of Goods Sold 950,000

Answer: ₱950,000

PROBLEM 2

Cost of Good Manufactured for April :

Beginning Materials Inventory 32,400

Add: Direct Materials 40,000

Direct Labour 33,000

Factory Overhead 17,160

Beginning Work in Process Inventory 7,200

Finished Good Inventory (Beginning) 8,000

Less: Ending Materials Inventory 34,000

Ending Work In Process Inventory 16,240

Ending Good Inventory 6,000

81,520

Answer: ₱81, 520

PROBLEM 3

Cost of Materials Purchased= (Ending Materials- Beginning Materials) + Cost of Goods Sold

(17,000-16,000) + 100,600=101,600

Answer: ₱101,600

PROBLEM 4

Cost of Goods Sold in 2018:

Beginning Materials Inventory 44,000

Add: Raw Materials Purchased 600,000

Direct Labor Cost 240,000

Indirect Labor Cost 120,000

Taxes,utilities and depreciation 100,000

Sales and Officce Salaries 128,000

Beginning Work in Process Inventory 80,000

Finished Good Inventory (Beginning) 50,000

Less: Ending Materials Inventory 60,000

Ending Work In Process Inventory 96,000

Ending Good Inventory 36,000

Cost of Goods Sold 1,170,000

Answer: ₱1,170,000

PROBLEM 5

Direct Materials Inventory:

Prime Cost is equals to Direct Materials plus Direct Labor

Prime Cost 301,000

Less:Direct Labor 180,000

Material Used in Production 121,000

Materials Beg. 16,000

Direct Material Purchased 170,000

Available Materials used in the production 186,000

Materials Used in th Production 121,000

Materials Burned by fire 65,000

Work In Process Inventory:

Cost of Goods Manufactured:

Cost of Goods Available for Sale 460,000

Less: Finished Goods Beg. 30,000

Cost of Goods Manufactured 430,000

Beg. Balance 34,000

Prime Cost 301,000

Factory Overhead 120,000

Less: Cost of Goods Manufactured 430,000

Work in Process End 25,000

Finished Goods Inventory:

Gross Profit on sales is 20%

Finished Goods Beg. 30,000

Cost of Goods Manufactured 430,000

Less: COGS 400,000

Finished Goods Ending 60,000

Answer: (1) ₱65,000 (2) ₱ 25,000 (3) ₱60,000

PROBLEM 6

Amount of Materials Purchased (gross)

Ending Inventory-Beginning Inventory +Cost of Goods Sold

Indirect labor 12,160

Direct labor 32,640

Freight in 5,570

Materials inventory 9,640

Overhead expenses 31,730

Indirect materials 21,390

Work in process end 7,820

Factory costs 194,080

Less: Beg. Materials 11,620

Work in process beg 5,740

297,670

Gross Profit

Sales (15,000 units) 360,000

Amount purchased 297,670

62,330

Answer: (1) ₱297,670 (2) ₱62,330

PROBLEM 7

Cost of Goods Sold 111,000

Finished Goods Inventory, December 31 17,500

Cost of Goods Available for Sale 128,500

Sales 182,000

Cost of Goods Sold 111,000

Gross Profit 71,000

Less: Marketing Expenses 14,000

General and Administrative Expenses 22,900 36,900

Operating Income 34,100

Answer: (1) ₱ 128, 500 (2) ₱ 34,100

PROBLEM 8

Cost of Materials Purchased= 326,000 +85,000- 75,000= 336,000

Total of Direct Labor and Applied manufacturing overhead= 686,000- 326,000=360,000

Let labor cost be Y.

Y + 0.6Y= 360,000

1.6Y= 360,000

Y= 225,000

Labor Cost charged to production is 225,000

Total manufacturing cost 686,000

Add Beginning work in process 80,000

Less Ending work in process 30,000

Cost of Goods manufactured 736,000

Answer: (1) ₱336,000 (2) ₱225,000 (3) ₱736,000

PROBLEM 9

Beginning raw materials 24,000

Add: Raw materials purchased 56,000

Materials available for use 80,000

Less: Ending raw materials inventory 20,000

Materials used in production 60,000

Add: Direct labor used 40,000

Prime Cost 100,000

Direct labor 40,000

Factory overhead [(40,000/6.40) x 8] 50,000

Conversion Cost 90,000

Answer: (1) ₱100,000 (2) ₱ 90,000

PROBLEM 10

Direct Materials Accounts:

Beginning direct materials+direct material purchases-ending direct materials

Beg.=100,000 + 90,000-(180,000-20,000)

Beg.=190,000-160,000

Direct material= 30,000

Work In Process Account:

Beginning Work in process Inv. + Manufacturing Costs-Cost of Goods Sold

= 35,000+72,000+20,000+56,000-180,000

Work in Process End= 3,000

Answer: (1) ₱30,000 (2) ₱3,000

PROBLEM 11

Materials used 440,000

Direct labor 290,000

Applied factory overhead (290,000x30%) 87,000

Factory cost 817,000

Work in process inventory, april 1 19x7 41,200

Total 858,200

Work in process inventory, april 1, 19x8 42,500

Cost of goods manufactured 815,700

Unit Cost (815,700/18,000 units) 45.32

Applied factory overhead 87,000

Actual factory overhead

Indirect labor 46,000

Light and Power 4,260

Depreciation 4,700

Repairs 5,800

Miscellaneous 29,000

89,760

Under-applied factory overhead (2,760)

Answer: (1) ₱45.32 (2) (₱2,760)

PROBLEM 12

Direct labor (8,000hrs. x 5.60) + (4,600hrs. x 6.00) 72,400

Factory Overhead (8,000hrs. x 6.00) + (4,600hrs. x 8.00) 84,800

Conversion Cost 157,200

Materials 20,000

Conversion Cost 157,000

End Work in Process 17,600

Materials 60,000

Less:End Materials 18,000

Beg. Finished Goods 22,000

Cost of Goods Sold 214,600

Answer: (1) ₱157,200 (2) ₱214,600