Exercise 10-1 ( Various topics) NAME .. RATING .............. SUBJECT /SECTION............. INSTRUCTOR...........". 15 Goody Inc. produces customized vans in a job order shop. On November 1, the following balances appear in the inventory records: Finished goods ........ P179,000 Work in process .... 308,000 Materials.... 83,000 The amount in Finished Goods represents P101,000 recorded for Van 175 and P78,000 recorded for Van 177. The work in process account represents the three vans in process, as follows: Van 179 Van 180 Van 181 Factory overhead. .. . ... P75,000 P50,000 P25,000 Direct labor ........ 60,000 40,000 20,000 Direct materials 26,000 7,000 5,000 The following transactions occurred during November: (a) Purchased materials on account, P 80,000. (b) Requisitioned P60,000 of materials from inventory: P15,000 applied to Van 180, P25,000 to Van 181, and $16,000 to Van 182, a new order; the balance was for indirect materials. (c) Recorded the liability for the payroll and the labor cost distribution in a single entry: total payroll, P208,750. Of the payroll cost, 10% applied to Van 179, 20% to Van 180, 35% to Van 181, 30% to Van 182, and the remainder to indirect labor. (d) Paid the payroll. (e) Applied factory overhead at the rate of 150% of direct labor cost. (f) Completed Vans 179 and 180. (g) Sold Vans 175, 177, and 180 at 50% over manufacturing costs. Compute for the cost of Vans 179 and 180 87Exercise 10-1 ( Various topics) NAME RATING .. SUBJECT /SECTION.......... INSTRUCTOR......... ."." 10. Selected cost data concerning the past fiscal year's operations of the Gen San Manufacturing Company are presented Inventories Beginning Ending Materials.......... P75,000 P 85,000 Work in process....... 80,000 30,000 Finished goods........ 90,000 110,000 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, P125,000 Compute for the cost of goods sold during the year was: 11. Yssa Company manufactures tools to customer specifications. The following data pertain to Job 1501 for April: Direct materials use.......... ... P4,200 Direct labor hours worked............ ...... 300 Direct labor rate per hour ........... ...P8.00 Machine hours used ....... ..200 Applied factory overhead rate per machine hour........... . ......4..... P 15.00 What is the total manufacturing cost recorded on Job 1501 for April? 85Exercise 10-1 ( Various topics) NAME ........ RATING SUBJECT /SECTION... INSTRUCTOR............. precisions 4. The Super Manufacturing Company which uses job order costing, applies factory overhead to production at a predetermined rate of 150% of direct labor cost. Any over or under applied factory overhead is closed to the cost of goods sold account. Additional information are as follows: Job 101 was the only job in process at January 31, with accumulated cost as follows: Direct materials Job soand west P 140,000 Direct labor 120,000 Applied factory overhead code 110,000 Jobs 102,103 and 104 were started during February wereon they Direct materials requisitioned for February totaled P560,000of Direct labor costs of P400,000 was incurred fro February as per direct labor heart Actual factory overhead was P620,000 for Febraury The only job still in process on February 20 was job 104, with costs of P 128,000 for direct materials and P118,000 for direct labor. The cost of goods manufactured for February was? at the beghinihe and end of any 5. Using the information in no. 4, over or under applied factory overhead at February 28 was? 6. Angels Industries reported the following data for the year just ended: sales revenue, P950,000; cost of goods sold, P420,000; cost of goods manufactured, P330,000; and selling and administrative expenses, P170,000. Angel's gross margin would be: 83Exercise 10-1 ( Various topics) NAME ....... SUBJECT /SECTION ....... INSTRUCTOR................". 16. Compute for the work in process inventory ending. 17. Compute for the cost of 175 and 179. 18. Compute for the total sales. 19. Compute for Jigs Company's prime cost. 20. Compute for Jigs conversion costs. 21 . During the past years, the Pretty Company incurred these costs; direct labor P 2,500,000; Factory overhead, P 4,000,000 and direct materials purchased P 1,500,000. Freight out was P 50,000 and freight in of P80,000. Inventories were costed as follows: Beginning Ending Finished goods.......... 250,000 P 300,000 Work in process...... 450,000 550,000 Materials... 175,000 125,000 Compute for the total manufacturing cost. 22. Compute for the cost of goods manufactured. 23. Compute for the cost of goods sold. 88Exercise 10-1 ( Various topics) NAME ........... RATING ........ SUBJECT /SECTION.. INSTRUCTOR.............. 1.Maher, Inc., applies manufacturing overhead at the rate of P60 per machine hour. Budgeted machine hours for the current period were anticipated to be 80,000; however, a lengthy strike resulted in actual machine hours being worked of only 65,000. Budgeted and actual manufacturing overhead figures for the year were P4,800,000 and P4,180,000, respectively. On the basis of this information, the company's year-end overhead was over/under applied by how much?: 2. Kingkong, Inc., disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of P590,000 in a year when manufacturing overhead was underapplied by P15,000. If sales revenue totaled P1,400,000, determine (1) Kingkong's's adjusted cost of goods sold and (2) gross margin. 3. The following cost data were taken from the records of XYZ Manufacturing company Depreciation on factory equipment P 120,000 Amortization of patent 50,000 Advertising expenses 35,000 Superintendente 45,000 Freight in 15,000 Wages of production workers 180,000 Wages of crane operators 111,000 Raw materials used 67,000 Commission expense 34,000 Factory insurance 23,000 Delivery expense 26,750 Factory rent 34,000 Based on the above information, compute for the total manufacturing cost. 82Exercise 10-1 ( Various topics) . . ...... RATING .......... NAME .... INSTRUCTOR.......... SUBJECT /SECTION ............. 12.. Arvy produces special-order wood products. The company uses job order costing for pricing and cost accumulation purposes. The following costs were incurred on two recent jobs: Cost Item ........... Job Pine-20 Job Birch-10 Direct materials: Issued ......... . ... P106,500 P800,000 Returned.......... 5,500 10,000 Indirect materials used.. 89,500 77,400 Direct labor........... P108,000 P115,000 Direct labor rate ......... P9 per hour P 10 per hour Overhead application rate P10 per direct labor hour P15 per direct labor hour The company adds a 50% markup on cost in determining the amount to charge for each job. Compute the cost of each job. 13. Compute for the selling price of Arvy for each job 14. Manufacturing Costs. Jigs Company is to submit a bid on the production of 6,500 Bags. It is estimated that the cost of materials will be P228,500, and the cost of direct labor will be P212,000. Factory overhead is applied at 50% of direct labor cost in the Molding Department and at P7.50 per direct labor hour in the Finishing Department. Of the above direct labor, it is estimated that 500 direct labor hours at a cost of P24,000 will be required in Finishing. The company wishes a markup of 80% of its total production cost. Compute for the total manufacturing cost. 86Exercise 10-1 ( Various topics) NAME ......... RATING ...... ..... SUBJECT / SECTION...... INSTRUCTOR. ........ 7. Happy Inc. manufactures specialized precision electronics kits. In late March, Job Orders # 0311 and #0322 were started. Estimated material costs were P 180,000 for both orders ( 60% for #0311) while direct labor hours were estimated at 700 for #0311 and 400 for #0322. Labor rate is P18 per hour while variable overhead rate is P10 and P15 per hour for fixed. By the end of April, 755 of the required materials have been issued to production in the amount of P 180,000 and both job orders have been 50% converted with 360 hours charged to #0311 and 180 hours charged to #0322 at the hourly rates given. The total cost charged to Job #0311 was? carged to production shining the id factory overhead applied at we rete of 60% of direct 8. Job no.111 has, at the end of the second week in April, an accumulated total cost of P 142,000. In the 3" week, P101,100 of direct materials were used on the job. Twenty hours of direct labor services were applied to the job at a cost of P 50 per hour. Manufacturing overhead was applied at the basis of P25 per direct labor hour for fixed overhead and P20 per hour for variable overhead. Job no. 111 was the only job completed during the 3" week. The total cost of Job no. 111 is? 9. The Arjay Company had the following inventories at the beginning and end of July: July 1 July 31 Materials........... P20,000 P 45,000 Work in process.... ? 185,000 Finished goods........... 65,000 115,000 During July, the cost of materials purchased was P160,000 and factory overhead of P125,000 was applied at a rate of 75% of direct labor cost. July cost of goods sold was P240,000. Compute for the Work in process July 31 84