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  • BSA401 Prob5Solutions

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    Mayy Pineda
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    The document compares raw materials used, direct labor costs, and factory overhead per the company's books versus an audit. The books showed raw materials overstated by P25,000 and direct labor understated by P25,000, while factory overhead matched. To calculate ending work-in-process, the document sets up an equation using total manufacturing costs per the books of P900,000, a target cost of P800,000, and the percentage of unfinished work (60% of WIP, end) to determine the ending WIP was P250,000.

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    BSA401-Prob5Solutions

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    The document compares raw materials used, direct labor costs, and factory overhead per the company's books versus an audit. The books showed raw materials overstated by P25,000 and direct labor understated by P25,000, while factory overhead matched. To calculate ending work-in-process, the document sets up an equation using total manufacturing costs per the books of P900,000, a target cost of P800,000, and the percentage of unfinished work (60% of WIP, end) to determine the ending WIP was P250,000.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    9 views1 page

    BSA401 Prob5Solutions

    Uploaded by

    Mayy Pineda
    The document compares raw materials used, direct labor costs, and factory overhead per the company's books versus an audit. The books showed raw materials overstated by P25,000 and direct labor understated by P25,000, while factory overhead matched. To calculate ending work-in-process, the document sets up an equation using total manufacturing costs per the books of P900,000, a target cost of P800,000, and the percentage of unfinished work (60% of WIP, end) to determine the ending WIP was P250,000.

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    © All Rights Reserved
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    of 1

    Solution

    1b Per books Per audit Difference


    Raw Materials Used P400,000 P375,000 P25,000 over
    Direct Labor 275,000 300,000 P25,000 under
    Factory Overhead 225,000 225,000 ---
    Total P900,000 P900,000

    2 c (60% of WIP, end) + 900,000 – WIP,end = 800,000


    WIP, end = 100,000/40% = P250,000

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