QUEZON CITY UNIVERSITY

MID TERM EXAMINATION

1st Semester AY 2021-2022
PRICING & CONTROL –SBENT 3G

(NOTE: Show your complete solution, without solution with correct

answer only is automatically ZERO)

A. Last month, SANAOL Company placed P60,000 materials into production.

The Printing Department used 8,000 labor hours at P5.60 per hour and the
Binding Department used 4,600 hours at P6 per hour. Factory Overhead is
applied at a rate of P6.00 per labor hour in the printing department and
P8.00 per labor hour in the Binding Department. SANAOL inventory
accounts show the following balances:

BEGINNING ENDING
Finished goods P 22,000 P 17,000
Work-In-Process 61,500 57,500
Direct materials 37,500 43,500

REQUIRED:
How much is the Cost of Goods Sold by preparing the statement of Cost of
Goods Manufactured and Sold

B. The following data were taken from the records of a manufacturing Co.
Depreciation on factory equipment P 1,000
Depreciation on sales office 500
Advertising 7,000
Freight-out (Shipping) 3,000
Wages of Production workers 28,000
Raw materials used 47,000
Sales salaries and commissions 10,000
Factory rent 2,000
Factory insurance 500
Materials handling 1,500
Administrative salaries 2,000
 REQUIRED:
Based on the above information, compute the manufacturing costs
incurred during the year.

C. ABC Products has no work in process or finished goods inventories at the

close of business on December 31, 2021. The balances of ABC accounts as
of December 31, 2021 are as follows:

Cost of Goods Sold P 2,040,000

General selling and administrative expenses 900,000
Sales 3,600,000
Factory overhead control 700,000
Factory Overhead applied 648,000

REQUIRED
Compute the NET INCOME BEFORE INCOME TAXES AS OF DECEMBER 31
2021.

D. Frankie uses a job order system and applies factory overhead to production
orders on the basis of DIRECT –LABOR COST. The overhead rates for 2021
are 200% for Department A and 50% for Department B, Job 123 started and
completed during 2021 was charged with the following costs:

Department A Department B
Direct materials P 25,000 P 5,000
Direct labor ? 30,000
Factory overhead 40,000 ?

REQUIRED:
Compute the total manufacturing cost associated with Job 123

-end of exam - goodluck-