CHAPTER 9 - ACCOUNTING FOR LABOR

Problem 1 - Evergreen Company

A) 1. CHARGED TO THE JOB
2. CHARGED TO FACTORY OVERHEAD CONTROL

CHARGED TO JOB CHARGED TO FOC

JOB 401 JOB 402 JOB 401 JOB 402
Direct materials 28,000 37,000 28,000 37,000
Direct labor 18,000 23,000 18,000 23,000
Factory overhead 5,600 11,200 7,600 15,200
Overtime ______ 6,000 ______ ______
Total 51,600 77,200 53,600 75,200

CHARGED TO FOC
Other factory costs P 16,800
Overtime 6,000
Total P 22,800 x 1/3
X 2/3

Problem 3 - Norman Company

Employe Guaranteed Total pay – piece rate Deficiency Total

e Wage Payroll
Cruz 2,000 (240 x 7.50) 1,800 200 2,000.00
Briones 2,000 (286 x 7.50) 2,145 - 2,145.00
David 2,000 (275 x 7.50) 2,062.50 - 2,062.50
Mendoze 2,000 (240 x 7.50) 1,800 200 2,000.00
Rivera 2,000 (225 x 7.50) 1,687.50 312,50 2,000.00
Tolentino 2,000 (285 x 7.50) 2,137.50 -___ 2,137.50
TOTAL 12,000 11,632.50 712.50 12,345.00

2. Charged to Work in process - 11,632.50

3. Charged to factory overhead account - 712,50
MULTILE CHOICE
1. b 6. a 11. b
2. b 7. d 12. c`
3. a 8. d 13. d
4. b. 9. a 14. d
5. a 10. c 15. d