Exercise 1-1 False word/phrase: Should be:

auxtero 1) W Finished Goods Inventory Work in Process Inventory

conge 2) R
cruz 3) W not important important
cunanan 4) R
manlangit 5) R
pacalioga 6) R
rodas 7) R
yncierto 8) R
auxtero 9) R
conge 10) R
cruz 11) W not all all
cunanan 12) R
manlangit 13) W selling cost distribution cost (?)
pacalioga 14) W direct cost (marketing manager) indirect cost
rodas 15) R
yncierto 16) W Joshua Josiah
auxtero 17) R
conge 18) W should be should not be
cruz 19) R
cunanan 20) R
Reference:
> page 20; under controlling accounts
> page 20; 2nd paragraph - "service firms typically have few material costs and large amounts of labor and overhead"
> page 4; 2nd paragraph - "even service firms need to understand…"
> page 20; under subsidiary records
> page 1; objective #4 plus mag involve og variable and fixed cost na naay relevance with total cost and per unit cost (page 13)
> page 1: objective #2 and #3
> page 11; indirect labor - does not directly affect the composition of the finished product
> page 20; controlling accounts and subsidiary records
> page 16; opportunity cost
> page 11; supervisory personnel is under indirect labor
> (nangutana rko ani huehue)
> page 12; period costs
> page 17; distribution cost (di ko sure pero nagtan-aw rkos storage cost nga part ani)
> page 11; indirect labor - does not directly affect the composition of the finished product
> (nangutana rsd ko ani huehue)
> page 1; under origin of cost accounting
> (ako rni gi google)
> (nangutana rsd ko ani, sorry)
> page 20; controlling accounts and subsidiary records
> page 12; period costs - "identified with a time period & not with the production of products"
(production of products = manufacturing.. idk if sakto akong pagsabot haha)
nts of labor and overhead"

otal cost and per unit cost (page 13)

Exercise 1-3
1) Direct Materials 12,000
Direct Labor 63,000
Overhead 21,000
Total Manufacturing Costs 96,000
Less: Increase in work in process inventory 11,500
Cost of goods manufactured 84,500

2) Direct Materials 15,000

Decrease in materials inventory 4,000
Direct Labor 40,000
Overhead 50,000
Total Manufacturing Costs 109,000
Beginning work in process inventory 28,000
Less: Cost of goods manufactured 99,000
Ending work in process inventory 38,000

3) Cost of goods sold 156,000

Less: Decrease in finished goods inventory 13,000
Cost of goods manufactured 143,000
Increase in work in process inventory 9,000
Total Manufacturing Costs 152,000

4) Direct Labor Costs 150,509

Factory Burden 75,254.50
Conversion costs 225,763.50

Total Cost of Manufacturing 451,527

Decrease in Materials Inventory 6,075
Decrease in Work in process Inventory 1,475
Increase in Finished Goods Inventory 3,301
Cost of goods manufactured 462,378
Exercise 1-4
1) Direct materials auxtero
2) Direct materials conge
3) Direct materials cruz
4) Direct materials cunanan
5) Direct materials manlangit
6) Direct labor rodas
7) Overhead pacalioga
8) Overhead yncierto
9) Overhead auxtero
10) Overhead conge
11) Selling and administrative expenses cruz
12) Selling and administrative expenses cunanan
13) Overhead manlangit
14) Selling and administrative expenses rodas
15) Selling and administrative expenses pacalioga
Exercise 1-5
1) Variable auxtero
2) Fixed conge
3) Fixed cruz
4) Variable cunanan
5) Fixed manlangit
6) Variable rodas
7) Fixed pacalioga
8) Fixed yncierto
9) Fixed auxtero
10) Variable conge
Exercise 1-6

Schedule

Cups of Coffee Served and Sold

Particulars 30,000 40,000 50,000

Total Variable Cost 180,000 240,000 300,000

Cost 300,000 300,000 300,000
Total Fixed Cost 480,000 540,000 600,000

Cost per cup of coffee

Variable Cost 6 6 6
Fixed Cost 10 7.5 6
Total Cost 16 13.5 12

Profitability

Particulars Amount
Sale 720,000
Less: Variable Cost 270,000
Contribution 450,000
Less: Fixed Cost 300,000
Profit 150,000

Breakeven

BEP FC/SPpc-VCpc
Amount of Cups 30,000 [300,000/(16-6)]
Contribution Margin 10/cup (450,000/45,000)