Summative Test (Part 2)

Instructions:
 Provide the requirements for the following problems.
 Write your answer on a clean paper.
 Write your name, date, and signature on every page of your paper.
 Take a picture and convert it into a PDF File.
 Make sure that your paper is in the upright position or it will not be checked.
 Show your solutions in every item.

Problem 1
A manufacturing company had inventories at the beginning and end of 2020 as follows:
Beginning End
Materials P 44,000 P 60,000
Work in Process 80,000 96,000
Finished Goods 50,000 36,000

During 2020, the following costs and expenses were incurred:

Raw Materials purchased P 600,000
Direct Labor cost 240,000
Indirect labor cost 120,000
Taxes, utilities, and depreciation of factory building 100,000
Sales and office salaries 128,000

Requirement: Prepare the Cost of Goods Sold statement for 2020 (from Materials to Cost of
Goods Sold). (10 pts)
Problem 2
LALISA manufacturing company makes one model of a product known as Brand A. On January
1, 2020, there was 500 units of finished product which were included in the finished goods
inventory. Other inventories on January 1 were:
Work in Process 5,740
Materials 11,620
Among the data available for December 31, 2020 were the following:
Indirect Labor 12,160
Direct Labor 32,640
Freight-In 5,570
Materials Inventory 9,640
 Other factory overhead expenses 31,730
Work in Process, inventory 7,820
Sales (15,000) 360,000
Indirect Materials 21,390
Total Factory Costs 194,080
There were 1,500 units of Brand A in the finished goods inventory at December 31, 2020.
For the year ended December 31, 2020, compute for the following:
a. The amount if materials purchased (gross): and (10 pts)
b. The gross profit. (5 pts)

Problem 3
Davis Company manufacturers desks. The beginning balance of Raw Material Inventory was P
4,500; raw material purchases of P 29,600 were made during the month. At month end, P 7,700
of raw material was on hand. Raw material used during the month was ___________? (5 points)

Problem 4
X Company manufactures wood file cabinets. The following information is available for June
2020 :
Beginning Ending
Raw Material Inventory $ 6,000 $7,500

Work in Process Inventory 17,300 11,700

Finished Goods Inventory 21,000 16,300

1. Refer to X Company. Direct labor is $9.60 per hour and overhead for the month was $9,600.
Compute total manufacturing costs for June, if there were 1,500 direct labor hours and $21,000
of raw material was purchased. ___________ (5 pts)
2. Refer to X Company. Direct labor is paid $9.60 per hour and overhead for the month was
$9,600. What are prime costs and conversion costs, respectively if there were 1,500 direct labor
hours and $21,000 of raw material was purchased? ____________ (5 pts)
3. Refer to X Company. Direct labor is paid $9.60 per hour and overhead for the month was
$9,600. If there were 1,500 direct labor hours and $21,000 of raw material purchased, Cost of
Goods Manufactured is ___________. (5 pts)
4. Refer to X Company. Direct labor is paid $9.60 per hour and overhead for the month was
$9,600. If there were 1,500 direct labor hours and $21,000 of raw material purchased, how much
is Cost of Goods Sold? ________ (5 pts).