1.

Rabid Manufacturing Company has the following data:

Direct labor Php 160,000
Direct materials used 191,000
Total manufacturing overhead 208,000
Beginning work in process 21,000

Instructions
Compute (a) total manufacturing costs and (b) total cost of work in process.

2. Prepare Journal entries to record the following summarized operations related to Amcar
Corporation
(a) Materials purchased on account $167,000
(b) Prepaid expenses incurred on account 12,200
(c) Materials requisitioned:
For production orders 12,200
For general factory use 2,700
(d) Factory labor used:
On production orders 141,300
For general factory purposes 12,000
(e) Depreciation on factory equipment 37,000
(f) Expiration of prepaid expenses,
chargeable to factory 6,100
(g) Factory overhead costs incurred on account 67,000
(h) Factory overhead applied, based on machine hours 105,300
(i) Jobs finished 415,300
(j) Jobs shipped to customers: cost, $412,000
selling price 638,000
Sol. 1 Compute (a) total manufacturing costs and (b) total cost of work in process.

a) Direct labor ₱ 160,000

Direct materials used 191,000
Total manufacturing overhead 208,000
Total manufacturing costs ₱ 559,000

b) Beginning work in process ₱ 21,000

Total manufacturing costs 559,000
Total cost of work in process ₱ 580,000

Sol. 2 Prepare Journal entries to record the following summarized operations related to Amcar

Date Particulars Gl Ref. Debit

Materials 176,000
Accounts Payable
To record the purchase of material
Prepaid Expenses 12,200
Accounts Payable
To record the prepaid expenses incurred
Work-in-Process 153,700
Factory Overhead 2,700
Materials
To record materials issued for production
Work-in-Process 141,300
Factory Overhead 12,000
Wages Payable
To record the wages for production and gen. purpose
Factory Overhead 37,000
Accumulated Deprecitation: Factory Equipment
To record the depreciation on equipment

Date Particulars Gl Ref. Debit

Factory Overhead 6,100
Prepaid Expenses
To record the expiration of prepaid expenses
Factory Overhead 76,000
Accounts payable
To record costs incurred on account
Work-in-Process 105,300
Factory Overhead
To record Factory overheads applied
Finished Goods 415,300
 Work-in-Process
To record transfer finished goods
Cost of Goods Sold 412,000
Finished Goods
To record cost of goods sold
Accounts receivable
Sales Revenue 638,000
To record the sales revenue on account
Credit

176,000

12,200

156,400

153,300

37,000

Credit

6,100

76,000

105,300
415,300

412,000

638,000