LINDY CO.

PARTICULARS
APRIL Work in Process Inventory
Raw Materials Inventory
Production of raw materials

Finished Goods Inventory

Work In Process Inventory - Job #72
Transfer of cost of completed Job #72

MAY Work in Process Inventory

Raw Materials Inventory
Production of raw materials

Finished Goods Inventory

Work In Process Inventory - Job #70
Transfer of cost of completed Job #70

Cost of Goods Sold

Finished Goods Inventory
Recognize sale of Job #72

JUNE Work in Process Inventory

Raw Materials Inventory
Production of raw materials

Finished Goods Inventory

Work In Process Inventory - Job #71
Work In Process Inventory - Job #73
Transfer the cost of the completed job orders

Cost of Goods Sold

Finished Goods Inventory
Recognize sale of Job #70

WORK IN PROCESS INVENTORY

APRIL
MAY

JUNE

FINISHED GOODS INVENTORY

APRIL

MAY

JUNE

PROFIT
JUNE Job #70
5200 + 4400 = 9600 x 0.5 = 4800

JULY Job #71

4100 + 3900 + 3000 = 11000 x 0.5 = 5500

Job #73
4700 + 4500 = 9200 x 0.5 = 4600

5500 + 4600 = 10100

LINDY CO.
GENERAL JOURNAL
PARTICULARS
JUNE Finished Goods Inventory
Work in Process Inventory - Job #71
Work in Process Inventory - Job #73
Transfer the cost of the completed job orders
 DEBIT CREDIT
10,500.00
10,500.00

1,200.00
1,200.00

16,900.00
16,900.00

9,600.00
9,600.00

1,200.00
1,200.00

11,100.00
11,100.00

20,200.00
11,000.00
9,200.00

9,600.00
9,600.00

SS INVENTORY
DEBIT CREDIT BALANCE
10,500.00 10,500.00
 1,200.00 9,300.00

16,900.00 26,200.00
9,600.00 16,600.00

11,100.00 27,700.00
20,200.00 7,500.00

S INVENTORY
DEBIT CREDIT BALANCE
1,200.00 1,200.00

9,600.00 10,800.00
1,200.00 9,600.00

20,200.00 29,800.00
9,600.00 20,200.00

DEBIT CREDIT
20,200.00
11,000.00
9,200.00
Answers
1 Material Inventory 4,200
2 Work in process inventory 16,100
3 Finished goods Inventory 14,000
4 Cost of Goods Sold 60,500
5 Under-or Overapplied overhead 2,500

Solutions Explanation
1 Purchase raw materials (a) 30,000 25,000 pieces x P1.20 per pie
Job order 501-505 Material charged to production -25,800
Materials Inventory 4,200

Explanation: JO #505 is the

2 Direct Materials 20,000 given
Direct Labor 3,600 given
Factory Overhead 4,500 3,600 DLH x P2.5 per DLH
Work in Process Inventory 28,100

Explanation: JO #504 was t

3 Direct Materials 3,200 given
Direct Labor 4,800 given
Factory Overhead 6,000 2,400 DLH x P2.5 per DLH
Finished Goods Inventory 14,000

Explanation: JO #501-503 a
4 Direct Materials 14,600 add all DM from JO#501-503
Direct Labor 20,400 add all DL from JO#501-504
Factory Overhead 25,500 add all FO from JO#501-505
COGS 60,500

5 actual FO 33,500 letter C (18,500+15,000)

applied FO 36,000 JOC #501-505 (14,400DLH x
Overapplied OH 2,500 actual < applied
00 pieces x P1.20 per piece

anation: JO #505 is the only job order in process as JO # 501-504 were already completed

0 DLH x P2.5 per DLH

anation: JO #504 was the last Finished Goods which was not SOLD

0 DLH x P2.5 per DLH

anation: JO #501-503 are all sold

all DM from JO#501-503 (4k+3.6k+7k)
all DL from JO#501-504 (6k+5.4k+9k)
all FO from JO#501-505 (3k+2.7k+4.5k) x P2.50 per DHL

C (18,500+15,000)
#501-505 (14,400DLH x P2.5 per DHL)
1 130000-20000=110000

2 110 000x 1.50= 165 000

3 Direct Materials 98,000

Direct Labor 110,000
Factory Overhead 165,000
TMC 373,000
WIP beg. 91,000
CGPIP 464,000
Less: WIP end 82,000
COGS 382,000

4 Finish Goods, beg 48,000

COGM 382,000
430,000
Less: Finish Goods, end 41,000
COGS 389,000

5 Actual FO 166,000
Less: Applied FO 165,000
Under applied FO 1,000
6 Job # 501 3,000+10,000= 13,000
Job# 502 8,000
21,000

7 Job# 501 Selling Price 18,000

Cost 13,000
5,000

8 160 000-140 000= 20 000

20 000- 28 000= 2 000
20 000/ 2 000= 0.1

9 Heat, Light and Power 38,000

Less: 34,000
4,000
Difference in production of units 20,000
variable rate 0.2 x
140,000 160,000
28,000 32,000

Total Cost 34,000 38,000

Total Variable Cost 28,000 32,000
6,000 6,000

10 349000-311000= 38,000
160000-140000= 20,000
1.9 x
140,000 160,000
266,000 304,000

311,000 349,000
Less: 266,000 304,000
45,000 45,000

45,000
1.9 x 150,000 285,000
330,000
 Problem 1-A

1. Amount of materials used

384,000 (DM, beginning)
3,136,000 (DM, purchases)
3,520,000
-275,200 (DM, ending)
3,244,800 (DM, used)

3. Prime costs added

3,244,000 (DM, sum)
2,176,000 (DML, cost)
5,420,000 (Prime costs)

5. Cost of goods manufactured in 2021

6,726,400 (Manufacturing costs, sum)
96,000 (Work-in-process, beginning)
6,822,400
-64,000 (Work-in-process, ending)
6,758,400 (COGM in 2021)
2. MC added to WIP
3,244,800 (DM, used)
2,176,000 (DM, labor)
384,000 (leasing costs, plant)
320,000 (Materials, handling)
275,200 (Indirect labor)
224,000 (Depreciation, equipment)
32,000 (Property taxes, equipment)
32,000 (Sandpaper)
22,400 (Coolants & lubricants)
16,000 (Fire insurance, equipment)
6,726,400 (Manufacturing costs)

384,000
320,000
4. Convertion costs added 275,200
2,176,000 (DM, labor) 224,000
1,305,600 (Factory overhead) 32,000
3,481,600 (Convertion costs) 32,000
22,400
16,000
1,305,600

6. Cost of goods sold in 2021

6,758,400 (COGM)
672,000 (Finished goods, beginning)
7,430,400
-1,280,000 (Finished goods, ending)
6150400 (COGS in 2021)
 384,000
320,000
275,200
224,000
32,000
32,000
22,400
16,000
1,305,600 (Factory overhead, sum)
 Requirement 1
Prepare the January 2021 Statement of Financial Operations for
Suchi Manufacturing Co.

Suchi Manufacturing Company

Statement of Operations
For the month ended January 31, 2021

Sales 480,000
Cost of Goods Sold
Raw Materials Purchases 105,200
Less: Raw Materials Inv, end 37,000
Direct Materials Used 68,200
Direct Labor Wages 130,800
Factory Overhead 150,200
Total Manufacturing Cost 349,200
Less: Work in Process, end 46,200
Cost of Goods Manufactured 303,000
Finished Goods Inventory, end 57,000
Cost of Goods Sold 360,000 360,000
Gross Profit 120,000
Less: Operating Expenses
Selling Expenses 66,400
General & Administrative Exp 53,600 120,000
Profit (Loss) 0

Requirement 2

Determine the inventory balances at the end of the first month of operations

Suchi Manufacturing Company

Inventory Balances
For the month ended January 31, 2021

Inventory balances on January 31, 2021:

Raw Materials ₱ 37,000.00
Work in Process ₱ 46,000.00
Finished Goods -₱ 57,000.00
a Raw Materials Inventory
Materials Purchased 105,200
Less: Direct Materials Used 68,200
37,000

b Work in Process
 Direct Materials Used 68,000
Direct Labor Wages 130,800
Factory Overhead 150,200
Less: Transfers to FGI 303,000
46,000

c Finshed Goods
Finished Goods Inventory 303,000
Less: Cost of Goods Sold 360,000
-57,000
1 Merchandise Inventory Purchases P
Cost of goods sold
Beginning balance
Ending balance

2 Direct Materials Beginning balance P

Ending balance
Purchases
Direct Materials Used

3 Work-in-process inventory Ending balance P

Cost of goods manufactured
Beginning balance
Current manufacturing cost

4 Finished Goods Inventory Cost of goods manufactured P

Ending balance
Cost of goods sold
Beginning balance
 420,000
(446,000)
82,000
56,000

14,000
(28,000)
96,000
82,000

44,000
42,000
(16,000)
70,000

(124,000)
40,000
122,000
38,000