Western Institute of Technology Quiz #: 2 Midterm

College of Business & Accountancy

Accountancy Department Date: __________________
Accounting 321 Class Schedule: _______________________
Name: _____________________________________________ Instructor: _________________________
Program & Year: _______________________________ Score: _______________________________

I. Journalizing. Give the entries to record the transactions below. Show your supporting computations. Use two (2) decimal
places in rounding off (20pts)

XX Manufacturing Company manufactures computer printers. As of July 31, 2021, it has two jobs orders- Job X which is
still in process and Job Y. XX reported the following inventories on hand as of July 31, 2021.
Finished Goods - (150units) P180,000
Work in Process - (200 units) P150,000
Raw Materials Inventory P120,000

During August, XX accepted a new order for 250 units of computer printers. It was Job Z. The following transactions
occurred during the month.
1. The company purchased P450,000 of raw materials on account, of which P50,000 was indirect.
2. It charged P255,000 of raw materials to production inclusive of indirect materials. The direct materials were
requisition as follows: Job X- 90,000; Job Z- P130,000.
3. Payroll after deducting SSS Contributions- P6,000; Philhealth Contributions- P2,800; Pag-ibig Fund
Contribution- P3,200; and Withholding tax- P25,000 amounted to P223,000.
4. Payroll was distributed as follows- Direct Labor- 70%; Indirect- 15%; Selling- 7% and remaining portion is for
administration. Direct labor for Job X was P72,000 while for Job Z was P110,000.
5. The company paid for payroll during the month.
6. Employers’ share on employee’s benefits are- Philhealth Contribution- P2,800; Pag-ibig Fund Contribution-
P3,200; and SSS contribution was P4,200. It was distributed as follows- Direct Labor- 70%; Indirect- 15%;
Selling- 7% and remaining portion are for administration.
7. Other expenses for the month amounted to P45,000; inclusive of P5,000 for depreciation. It was distributed as
follows- Factory – 70%; Sales- 15% and administration – 15%.
8. Factory overhead was applied at P80% of direct labor cost.
9. Job X was completed and transferred to finished goods inventory. Job Z’s 50 units were also completed.
10. Job Y- 150 units and X- 180 units was sold at P2,700 per unit.

II. Problem Solving. Write your answer on the space provided before each number. Kindly show your supporting
computation in good form on separate sheet of paper. Encircle your final answer. Use two (2) decimal places in
rounding off.
____________________________1. MV Crafts manufactures to customer order using job order cost system. For the month just
ended, it registered the following data:

Beginning work in process (5partially completed jobs) P300,000

Orders completed(18) 2,400,000
Orders shipped(14) 2,000,000
Materials requisitioned for the month 1,700,000
Direct Labor Cost 800,000
Factory Overhead rate 150% of direct labor cost

How much is the cost of goods manufactured?

____________________________2. Adones Company uses a job order costing system and the following information is available
from the records. The company has 3 jobs in process 101,102 and 103:
Raw materials used P120,000
Direct labor per hour P8.50
Overhead applied based on direct labor cost 120%

Direct material was requisitioned as follows for each job, respectively: 30%, 25% and 25%, the balance of the requisition was
considered indirect. Direct labor hours per job are 2,500; 3,100; and 4,200, respectively. Indirect labor is P33,000. Other actual
overhead costs totalled1 P36,000. If job 103 is completed and transferred, how much is the total cost transferred to Finished
Goods Inventory?
____________________________3. The work in process account of Mal Company follows:
Description Amount Description Amount
Beginning balance 50,000 FOH- Applied 60,000
Direct Materials 100,000 To Finished goods 250,900
Direct Labor 80,000

Overhead is applied to production at a predetermined rate based on direct labor cost. The work in process at the end of
the month represents the cost of Job No. 1 and 2, which has been charged with direct labor cost of P6,000; and Job No 2,
which has been charged with applied overhead of P4,800. Compute for the cost of direct materials charged to Job No. 1
and 2.