QUESTION 51 1. MLB, Inc. is employing normal costing for its job orders. The overhead is applied using a predetermined overhead rate. The following information relates to the MLB, Inc. for the year ended December 31, 2020: Job 101 Job 102 Job 103 Job in process, Jan 1, 2020: Direct materials 40,000 30,000 10 Labor 60,000 40,000 10 Overhead 30,000 20,000 0 Costs added during 2020: Materials Labor 20,000 10,000 100,000 200,000 100,000 400,000 Overhead ? ? ? Additional information: Actual overhead for the year 2020 amounted to 350,000 Jobs No 101 and 102 were completed and transferred to finished goods during year 2020. Job No. 101 was sold during the year 2020. The gross profit rate is 20% based on cost. QUESTION 56 1. Marawi Company employs normal costing for its production. The following data are provided during the current year: Net purchases of raw materials during the year 500,000 Total labor costs during the year 800,000 Depreciation of factory assets during the year 100,000 Utilities on the factory during the year 300,000 Beginning Ending Raw materials inventory |200,000 300,000 Work in process 500,000 200,000 inventory 300,000 Finished goods inventory 600,000 The entity uses a single account for its direct material and indirect materials. Indirect material used is one-fourth of the total material used. The indirect labor cost is 1/8 of the total labor costs. The overhead application rate is 80% of direct labor costs. Any over or under application of overhead is considered material. What is the total manufacturing cost during the year? QUESTION 59 Flor Company consumed 450,000 worth of direct materials during May 2020. At the end of the month, the direct materials inventory of Flor was 25,000 lower than the May 1 inventory level. How much was the direct materials procured during May 2020? O 475,000 O 375,000 O 400,000 O 425,000 QUESTION 60 Burger Cos' materials purchased during 2020 are 25,590 and materials put into production are direct and indirect materials, respectively, worth 18,500 and 7,090. The total factory payroll is 74,000 of which 50,000 represents direct labor. Other factory overhead costs amount to 32,000. The company applies the actual factory overhead costs to process. Sales, cost of goods sold and the cost of goods manufactured, respectively, are 130,000, 120,000, and 128,000. By what amount did the company's closing goods in process inventory exceed its opening goods in process inventory? O 1,590 3,590 O 5,390 10,590 QUESTION 61 The following selected information pertains to Ajax Processing Co. direct materials, P62,500; indirect materials, P12,500; factory payroll, P75,000 of direct labor and P11,250 of indirect labor; and other factory overhead incurred, P37,500. The total conversion cost was: O 136.250 O 137,500 250,000 O 273,750 QUESTION 62 The Childers Company manufactures widgets. During the fiscal year just ended, the company incurred prime costs of P1,500,000 and conversion costs of P1,800,000. Overhead is applied at the rate of 200% of direct labor cost. How much of the above costs represent material cost? O 1,500,000 O 300,000 900,000 600,000 QUESTION 63 Ajax Corporation transferred P72,000 of raw materials to its production department in February and incurred P37,000 of conversion costs (P22,000 of direct labor and P15,000 of overhead). At the beginning of the period, P14,000 of inventory (material and conversion cost) was in process. At the end of the period, P18,000 of inventory was in process. What was the cost of goods manufactured? 105,000 109.000 QUESTION 66 1. Under Pick Company's job-order costing system manufacturing overhead is applied to work in process using a predetermined annual overhead rate. During January 2021, Pick's transactions included the following: Direct materials issued to production Indirect materials issued to production Manufacturing overhead incurred 90,000 8,000 125,000 113,000 107,000 Manufacturing overhead applied Direct labor costs Pick had neither beginning nor ending work-in-process inventory, what was the cost of jobs completed in January 2021? 302,000 310,000 322,000 O 330,000 1. NBA Inc. is engaged in the business of manufacturing basketballs. The company employs actual costing system. The company uses a single account for direct and indirect materials. The company provided the following data for the year ended December 31, 2020: Gross sales Sales returns Gross purchases 9,500,000 500,000 1,000,000 Purchase returns, allowances and discount 200,000 Freight in 400,000 Total costs of factory labor 1,000,000 Depreciation of factory assets 300,000 Expired insurance on factory assets 100,000 Utilities expense on factory 500,000 Total administrative expenses 2,000,000 Total marketing expenses 3,000,000 nventories are as follows: January 1 December 31 Raw materials 100,000 300,000 Work in process ? 200,000 Finished goods 500,000 600,000