ABC Company manufactures to customers order using the job order cost system.

WIP
For the month just ended, it registered the following data: Beginning work in 300,000
process, (5 partially completed jobs) P300, 000; Orders completed P2, 400, 000;
1,700,000
Orders shipped P2, 000,000; Materials requisitioned for the month P1, 700, 000;
Direct labor cost P800, 000; Overhead rate 150% of direct labor cost. Ending work 800,000
in Process? 1,200,000 2,400,000
1,600,000

A company allocates overhead to jobs in process using direct labor costs, raw
material costs, and machine hours. The overhead application rates for the current DM DL OH
year are: 100% of direct labor; 20% of raw materials; P117 per machine hour. A 2,000 8,000 8,000 100%
particular production run incurred the following costs: Direct labor, P8,000; Raw
materials, P2,000; A total of 140 machine hours were required for the production 400 20%
run. What is the total cost that would be charged to the production run?
16380 117/hr
34,780
The beginning monthly balance of materials inventory of Premium Industries was Materials
P37,000, the ending balance was P39,500, and P257,800 of materials were used. The
37,000
cost of materials purchased during the month was:
260,300 257,800
39,500
Premium Corporation manufactures a specialty line of dresses using a job-order cost system.
DM During January, the following costs
27,400
were incurred in completing job J-1: Direct materials P27,400; Direct labor P9,600; DL 9,600
Administrative costs P2,800; Selling costs P11,200. Factory overhead was applied at
the rate of P50 per direct labor hour, and job J-1 required 400 direct labor hours. If
OH 20000
job J-1 resulted in 4,000 good dresses, the cost of goods sold per unit is: 57,000
4,000 unit
Per unit 14.25
The work in process account of the Premium Company which uses a job order WIP, End =19,550
cost systems follows: (Refer to picture 1). Overhead is applied to production at a 456 789
predetermined rate, based on direct labor cost. The work in process at April 30
represents the cost of Job No. 456, which has been charged with direct labor cost
DM 8,700
of P3, 000 and Job No. 789, which has been charged with applied overhead of DL 3,000 3200
P2, 400. The cost of direct materials charged to Job No. 456 and Job No. 789 OH 2250 2,400
amounted to:
OHR 30000/40000 75%

DM 362,500
DL 312,500
OH 225000
Premium Corporation manufactures rattan furniture’s sets for exports and uses the job
order cost systems in accounting for its costs. You obtained from the corporation’s
books and records the following information for the year ended December 31, 2017:
900,000
1) The work in process inventory on January 1 was 20% less than the work in process
inventory on December 31; 2) The total manufacturing costs added during 2013 was P900, 000 based on actual direct materials and
direct labor but with manufacturing overhead applied on actual direct labor pesos; 3) The manufacturing overhead applied to
process was 72% of the direct labor pesos, and it was equal to 25% of the total manufacturing costs; 4) The cost of goods
manufactured, also based on actual direct materials, actual direct labor and applied manufacturing overhead, was P850, 000. The
cost of direct materials used is:

Premium Corporation manufactures rattan furniture’s sets for exports and uses the job order
cost systems in accounting for its costs. You obtained from the corporation’s books and
records the following information for the year ended December 31, 2017: 1) The work in
process inventory on January 1 was 20% less than the work in process inventory on
TMC 900,000
December 31; 2) The total manufacturing costs added during 2013 was P900, 000 based on
actual direct materials and direct labor but with manufacturing overhead applied on actual
direct labor pesos; 3) The manufacturing overhead applied to process was 72% of the direct
WIP Beg 200,000
labor pesos, and it was equal to 25% of the total manufacturing costs; 4) The cost of goods
manufactured, also based on actual direct materials, actual direct labor and applied
manufacturing overhead, was P850, 000. The work in process inventory on December 31,
WIP, End 250,000
COGM 850,000
2017 is:
Premium, Inc., which uses a job-costing system, began business on January 1, 2018 and
applies manufacturing overhead on the basis of direct-labor cost. The following
information relates to 2018: 1) Budgeted direct labor and manufacturing overhead were
DM 55,000
anticipated to be P200,000 and P250,000, respectively; 2) Job nos. 1, 2, and 3 were begun
during the year and had the following charges for direct material and direct labor (refer to DL 80,000
picture 2); 3) Job nos. 1 and 2 were completed and sold on account to customers at a
profit of 60% of cost. Job no. 3 remained in production; 4) Actual manufacturing OH 100000
overhead by year-end totaled P233,000. Premium adjusts all under- and overapplied
overhead to cost of goods sold. What is Premium's ending work-in-process inventory? 235,000
Premium, Inc., which uses a job-costing system, began business on January 1, 2018 and
applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 2018: 1) Budgeted direct

1 2
labor and manufacturing overhead were anticipated to be P200,000 and DM 145,000 320,000
P250,000, respectively; 2) Job nos. 1, 2, and 3 were begun during the year and
had the following charges for direct material and direct labor (refer to picture
DL 35,000 65,000
above); 3) Job nos. 1 and 2 were completed and sold on account to customers at a
profit of 60% of cost. Job no. 3 remained in production; 4) Actual manufacturing
OH 43750 81250
overhead by year-end totaled P233,000. Premium adjusts all under- and
overapplied overhead to cost of goods sold. What is Premium's sales revenue?
Cost 690,000
Sales 1104000
Var 32+20+15+3
Abdullah Corp. estimated its units costs of producing and selling 12,000 units per month as follows: Direct materials used P 32;
Direct labor P 20; Variable factory overhead P 15; Fixed factory overhead P 6;
Variable marketing costs P 3; Fixed marketing costs P 4. What is the estimated total
variable costs per year based on the above information?
Total 70
*by 12,000 840,000
Lawi Co. Company had the following inventory balances at the beginning and end of November: Raw Materials P17,000 (Beg) and
P20,000 (End); Finished Goods P50,000 (Beg) and P44,000 (End); Work in Process P
9,000 (Beg) and P11,000 (End). During November, P39,000 in raw materials (all direct
Materials
materials) were drawn from inventory and used in production. The company's
predetermined overhead rate was P8 per direct labor-hour, and it paid its direct labor
17,000
workers P10 per hour. A total of 300 hours of direct labor time had been expended on
the jobs in the beginning Work in Process inventory account. The ending Work in 42,000 39,000
Process inventory account contained P4,700 of direct materials cost. The Company
incurred P28,000 of actual manufacturing overhead cost during the month and applied 20,000
P26,400 in manufacturing overhead cost. The raw materials purchased during
November totaled:

Lawi Co. Company had the following inventory balances at the beginning and
end of November: Raw Materials P17,000 (Beg) and P20,000 (End); Finished
Goods P50,000 (Beg) and P44,000 (End); Work in Process P 9,000 (Beg) and
WIP = 11,000
P11,000 (End). During November, P39,000 in raw materials (all direct materials)
were drawn from inventory and used in production. The company's predetermined
overhead rate was P8 per direct labor-hour, and it paid its direct labor workers
DM 4,700
DL 3,500
P10 per hour. A total of 300 hours of direct labor time had been expended on the
jobs in the beginning Work in Process inventory account. The ending Work in
Process inventory account contained P4,700 of direct materials cost. The

OH 2,800
Company incurred P28,000 of actual manufacturing overhead cost during the
month and applied P26,400 in manufacturing overhead cost. The amount of direct
labor cost in the November 30 Work in Process inventory was:

11,000
Abolais Co. uses a job order cost system. The following debits (credit)
appeared in Abolais’ work in process account for the month of April (refer to WIP = 8,800
picture 3). Abolais applies overhead to production at a predetermined rate of DM 5,200
80% of direct manufacturing labor costs. Job No. 5, the only job still in process
on April 30, has been charged with direct manufacturing labor of P2,000. What DL 2,000
was the amount of direct materials charged to Job No. 5?
OH 1,600
8,800
At the beginning of the year, Macaalin Inc. budgeted the following:
Units 10,000u; Sales P100,000; Total variable expenses P 60,000; FOH-C 39,500
Total fixed expenses P 20,000; Net income P 20,000; Factory
overhead (Variable P 30,000 and Fixed P 10,000). There were no FOH-A 38,000
beginning inventories. At the end of the year, no work was in process,
total factory overhead incurred was P39,500, and underapplied UA 1,500
factory overhead was P1,500. Factory overhead was applied on the
basis of budgeted unit production. How many units were produced OHR 40,000/10,000 4
this year?
Units 38,000/4 9500
The accounting records for 2017 of Lomundaya Music Co. showed the following (refer to RM P 1,290,000
picture 4). The cost of raw materials used for the period amounted to: Inc. in RM 45,000
1,245,000

FOH-C 233,000
Tomawis, Inc., which uses a job-costing system, began business on January 1, 2018 and applies manufacturing overhead on the
basis of direct-labor cost. The following information relates to 2018: Budgeted direct
labor and manufacturing overhead were anticipated to be P200,000 and P250,000,
respectively; Job nos. 1, 2, and 3 were begun during the year and had the following
charges for direct material and direct labor (refer to picture 5); Job nos. 1 and 2 were
FOH-A 225,000
completed and sold on account to customers at a profit of 60% of cost. Job no. 3
remained in production; Actual manufacturing overhead by year-end totaled P233,000. UA 8,000
Tomawis adjusts all under- and overapplied overhead to cost of goods sold.
Manufacturing overhead is under- or overapplied by how much?

OH 15,000+8,000+10,000+12,000
Omar Company has the following estimated costs for the next year: Direct materials P

Labor Hours 20,000

OHR 2.25
4,000; Direct labor P 20,000; Rent on factory building P 15,000; Sales salaries P 25,000; Depreciation on factory equipment P
8,000; Indirect labor P 10,000; Production supervisor’s salary P 12,000. Omar Company estimates that 20,000 labor hours will be
worked during the year. If overhead is applied based on direct labor hours, the overhead rate per hour will be:

Selected cost data concerning the past fiscal year’s operations of the Baute
Manufacturing Co. are presented below (refer to picture 6). Materials used, Materials
P326,000. Total manufacturing costs charged to production during the year
(including direct materials, direct labor, and factory overhead applied at the rate of 75,000
60% of direct labor cost), P686,000. Cost of goods available for sale, P826,000.
Selling and general expenses, P25,000. What is the amount of direct materials 336,000 326,000
purchased during the year?
85,000
Selected cost data concerning the past fiscal year’s operations of the Baute
Manufacturing Co. are presented below (refer to picture above). Materials used, TMC 686,000
P326,000. Total manufacturing costs charged to production during the year
(including direct materials, direct labor, and factory overhead applied at the rate of WIP Beg 80,000
60% of direct labor cost), P686,000. Cost of goods available for sale, P826,000.
Selling and general expenses, P25,000. What is the cost of goods manufactured WIP, End 30,000
during the year?
COGM 736,000

TGAS 826,000
Selected cost data concerning the past fiscal year’s operations of the Baute Manufacturing Co. are presented below (refer to picture
above). Materials used, P326,000. Total manufacturing costs charged to production
during the year (including direct materials, direct labor, and factory overhead applied
at the rate of 60% of direct labor cost), P686,000. Cost of goods available for sale,
P826,000. Selling and general expenses, P25,000. What is the cost of goods sold
during the year?
FG, End 110,000
COGS 716,000
The Strongest Tool Corporation, which commenced operations on August 1, employs
a job order costing system. Overhead is charged at a normal rate of P2.50 per direct labor hour. The actual operations for the month
of August are summarized as follows: Purchases of raw material, 25,000 pieces @ P1.20/piece; Material and labor costs charged to
production (refer to picture 7); Actual overhead costs incurred (Variable P18,500 and Fixed P15,000); Completed jobs: 101, 102,
103, and 104; Sales-P105,000. All units produced on Jobs 101, 102, and 103 were sold. Compute the balances on August 31 of
Material inventory

RM 30,000
used 25,800
4,200

WIP JOB 105

The Strongest Tool Corporation, which commenced operations on August 1, employs a job order costing system. Overhead is
charged at a normal rate of P2.50 per direct labor hour. The actual operations for the
month of August are summarized as follows: Purchases of raw material, 25,000 pieces
@ P1.20/piece; Material and labor costs charged to production (refer to picture above); DM 8,000
Actual overhead costs incurred (Variable P18,500 and Fixed P15,000); Completed jobs:
101, 102, 103, and 104; Sales-P105,000. All units produced on Jobs 101, 102, and 103 DL 3,600
were sold. Compute the balances on August 31 of Work in process inventory
OH 4500
16,100
The Strongest Tool Corporation, which commenced operations on August 1, employs a
job order costing system. Overhead is charged at a normal rate of P2.50 per direct labor FG JOB 104
hour. The actual operations for the month of August are summarized as follows:
Purchases of raw material, 25,000 pieces @ P1.20/piece; Material and labor costs DM 3,200
charged to production (refer to picture above); Actual overhead costs incurred (Variable
P18,500 and Fixed P15,000); Completed jobs: 101, 102, 103, and 104; Sales-
DL 4,800
P105,000. All units produced on Jobs 101, 102, and 103 were sold. Compute the
balances on August 31 of Finished goods inventory
OH 6000
14,000
The Strongest Tool Corporation, which commenced operations on August 1, employs
a job order costing system. Overhead is charged at a normal rate of P2.50 per direct
COGS JOB 101,102,103
labor hour. The actual operations for the month of August are summarized as follows:
Purchases of raw material, 25,000 pieces @ P1.20/piece; Material and labor costs DM 14,600
charged to production (refer to picture above); Actual overhead costs incurred
(Variable P18,500 and Fixed P15,000); Completed jobs: 101, 102, 103, and 104; DL 20,400
Sales-P105,000. All units produced on Jobs 101, 102, and 103 were sold. Compute
the balances on August 31 of Cost of goods sold – normal OH 25500
60,500
The Strongest Tool Corporation, which commenced operations on August 1, employs
a job order costing system. Overhead is charged at a normal rate of P2.50 per direct labor
hour. The actual operations for the month of August are summarized as follows:
FOH-C 33,500
Purchases of raw material, 25,000 pieces @ P1.20/piece; Material and labor
costs charged to production (refer to picture above); Actual overhead costs
incurred (Variable P18,500 and Fixed P15,000); Completed jobs: 101, 102, WIP FOH-A a
180,000
36,000
a/b
103, and 104; Sales-P105,000. All units produced on Jobs 101, 102, and 103
were sold. Compute the balances on August 31 of Under- or overapplied FG
overhead
COGS
OA 270,000
-2,500
750,000 62.50%
b 1,200,000
Share of COGS 33,000*62.5% 20,625
COGS 750,000-20,625 729,375
The Hardest Company has overapplied overhead of P33,000 for the year. Before disposition of over applied overhead, selected
year end balances from the company’s accounting records were: Sales P1,000,000; Cost of Goods Sold P 750,000; Direct materials
inventory P 50,000; Work in process inventory P 180,000; Finished goods inventory P 270,000; Store supplies inventory P 20,000.
The over or under applied overhead is allocated to appropriate inventories and cost of goods based on year end balances. In its year
end income statement, The Hardest should report cost of goods sold of:

During the current accounting period, a manufacturing company purchased

P70,000 of raw materials, of which P50,000 of direct materials and P5,000 of
indirect materials were used in production. The company also incurred
IM 5,000
P45,000 of total labor costs and P20,000 of other factory overhead costs. An
analysis of the work-in-process control account revealed P40,000 of direct
IL 5,000
Others 20,000
labor costs. Based upon the above information, what is the total amount
accumulated in the factory overhead control account?

30,000