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    13 views8 pages

    2023 Answer CHAPTER 8 PDF

    Uploaded by

    Rianne Navidad

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    Chapter 8 Answer Key

    TRUE OR FALSE
    1. T
    2. T
    3. T
    4. F
    5. F
    6. F
    7. T
    8. T
    9. F
    10. F
    11. T
    12. T
    13. F
    14. T
    15. F
    16. F
    17. T
    18. F
    19. T
    20. F
    21. F
    22. T
    23. T
    24. T
    25. T
    26. T
    27. T
    28. F
    29. T
    30. F
    31. F

    Multiple Choice
    1. B
    2. D
    3. D
    4. A
    5. C
    6. B
    7. A
    8. A
    9. C/A
    10. B
    11. C
    12. B
    13. A
    14. C
    15. A
    16. D
    17. A
    18. B
    19. A
    20. C
    21. C
    22. C
    23. A
    24. D
    25. B
    26. C
    27. C/A
    28. A
    29. C
    30. B/D
    31. B
    32. B
    33. B/D
    34. C/A
    Straight Problems
    Problem 1
    Answer
    1.
    FOH control 73,000
    Raw materials 50,000
    Payroll 20,000
    FOH applied (300 x 10) 3,000

    2.

    Work in Process 73,000


    Raw materials 50,000
    Payroll 20,000
    FOH applied (300 x 10) 3,000

    3.
    Loss on Abnormal rework 73,000
    Raw materials 50,000
    Payroll 20,000
    FOH applied (300 x 10) 3,000

    Problem 2

    Answer
    A. Specific Job B. All production
    a. WIP 1,752,000 a. WIP 1,760,000
    Materials 1,200,000 Materials 1,200,000
    Payroll 400,000 Payroll 400,000
    FOH (19 x 8,000) 152,000 FOH (20 x 8,000) 160,000

    b. Spoiled goods (180 x 100) 18,000 b. Spoiled goods (180 x 100) 18,000
    WIP 18,000 FOH Control 4,000
    WIP (220 x 100) 22,000
    c. FG 1,734,000
    WIP 1,734,000 c. FG 1,738,000
    WIP 1,738,000
    Problem 3

    Answer

    a. Cash or Accounts Receivable 1,000


    Sales of scrap 1,000

    b. Cash or Accounts Receivable 1,000


    Work in Process 1,000

    c. Cash or Accounts Receivable 1,000


    FOH control 1,000

    d. Scrap Inventory 1,000


    Work in Process 1,000

    Cash or Accounts Receivable 1,000


    Scrap inventory 1,000

    e. Scrap Inventory 1,000


    FOH control 1,000

    Cash or Accounts Receivable 1,000


    Scrap inventory 1,000

    f. Materials 1,000
    FOH control 1,000

    WIP 1,000
    Materials 1,000

    Problem 4

    Answer
    1.
    FOH control 2,200
    Raw materials 1,000
    Payroll 800
    FOH applied (200 x 2) 400

    2.
    Work in Process 2,200
    Raw materials 1,000
    Payroll 800
    FOH applied (200 x 2) 400

    3.
    Loss on Abnormal rework 2,200
    Raw materials 1,000
    Payroll 800
    FOH applied (200 x 2) 400

    Problem 5

    Answer

    A. Specific Job
    Before detection of defective goods Accounting for Reworking Costs To record the 500 completed units
    WIP 1,240,000 WIP 232,000 FG 1,472,000
    Materials 600,000 Materials 40,000 WIP 1,472,000
    Payroll 400,000 Payroll 120,000
    FOH applied 240,000 FOH applied 72,000

    B. Common to All Jobs


    Before detection of defective goods Accounting for Reworking Costs To record the 500 completed units
    WIP 1,240,000 FOH Control 232,000 FG 1,240,000
    Materials 600,000 Materials 40,000 WIP 1,240,000
    Payroll 400,000 Payroll 120,000
    FOH applied 240,000 FOH applied 72,000

    C. Abnormal defective goods


    Before detection of defective goods Accounting for Reworking Costs To record the 500 completed units
    Loss from
    WIP 1,240,000 Abnormal Rework 232,000 FG 1,240,000
    Materials 600,000 Materials 40,000 WIP 1,240,000
    Payroll 400,000 Payroll 120,000
    FOH applied 240,000 FOH applied 72,000
    Problem 6

    Answer
    Specific job

    WIP 1,240,000

    Materials 600,000

    Payroll 400,000

    FOH 240,000

    Spoiled goods 50,000

    Work in Process 50,000

    FG 1,190,000

    WIP 1,190,000

    b. All production

    WIP 1,240,000

    Materials 600,000

    Payroll 400,000

    FOH 240,000

    Spoiled goods 50,000

    FOH control 105,000

    Work in Process (250 x 620) 155,000

    FG 1,085,000

    WIP 1,085,000

    c. 680 and 620


    d.

    WIP 1,240,000

    Materials 600,000

    Payroll 400,000

    FOH 240,000

    Spoiled goods 50,000

    Loss from abnormal spoilage 105,000

    Work in Process (250 x 620) 155,000

    FG 1,085,000

    WIP 1,085,000

    Problem 7

    Answer
    WIP 155,000
    Materials (275 x 500) 137,500
    Payroll (25 x 500) 12,500
    FOH applied (10 x 500) 5,000

    Defective goods
    WIP 1,000
    Materials 700
    Payroll 200
    FOH applied 100

    Spoiled goods
    Spoiled goods inventory 3,300
    WIP (22 x 150) 3,300

    FG 152,700
    WIP 152,700
    2. P152,700 / 478 good units (500 units – 22 spoiled units) = P319.46

    Problem 8

    Answer
    1. WIP 2,000,000 + rework cost 200+ 400 + (25% x 400) = 2,700,000 / 1,000 =2,700.
    2. WIP 2,000,000 / 1,000 = 2,000

    Problem 9

    Answer

    Spoiled Goods inventory 2,000


    Loss from abnormal spoilage 1,000
    Work in Process 3,000

    Problem 10

    Answer
    1. Total unit costs 4,300 x 2,200 =9,460,000 – spoiled goods (200 x 4,300 ) 860,000 =
    8,600,000 divide by 2,000 units = 4,300

    2. Total unit costs 4,000 x 2,200 = 8,800,000 – spoiled goods 400,000 = 8,400,000
    divide by 2,000 units = 4,200

    Problem 11

    Answer:
    a. 22,000 x 15 = 330,000 + defective 10,000 – spoilage 30,000 = 310,000 divide by
    20,000 units = P15.50 per unit
    b. 15

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