Use the following information for question 1 to 4

The following information has been from the cost records of Master Corporation for the past year.

Raw material used in production P 326,000

Total manufacturing costs charged to

Production during the year (includes

Direct material, direct labor and overhead

equal to 60% of direct labor cost) 686,000

Cost of goods available for sale 826,000

Selling and Administrative expenses 25,000

Inventories Beginning Ending

Raw Material Inventory P 75,000 P 85,000

Work in Process Inventory 80,000 30,000

Finished Goods Inventory 90,000 110,000

1. The cost of raw material purchased during the year was ______________.

2. Direct labor charged to production during the year was _____________.

3. Cost of Goods Manufactured was _______________.

4. Cost of Goods Sold was ______________.

5. The following costs relate to Showman Industries for the last quarter:

Conversion cost P435,000

Direct materials 215,000

Manufacturing overhead 190,000

Selling and administrative expense 185,000

What is Showman's prime cost for the last quarter?______________.

6. During the month of January, Wow Co.'s direct labor cost totaled P 36,000, and direct labor

cost was 60% of prime cost. If total manufacturing costs during January were P85,000 the

manufacturing overhead was _______________.

7. The following information was taken from Shocker Company's accounting records for the

year ended December 31, 2019:

Increase in raw materials inventory P15,000

Decrease in finished goods inventory 35,000

Raw materials purchased 430,000

Direct labor payroll 200,000

Factory overhead 300,000

Freight out 45,000

There were no work in process inventory beginning or end of the year.

Required: Compute the cost of goods sold.

8. Khitams Company uses normal costing. Its job costing system has two direct cost categories

(direct materials and direct labor) and one indirect cost category (manufacturing overhead).

The following information is obtained from the company's records for 2019:

Total manufacturing costs, P8,000,000.

Cost of finished goods manufactured, P7,920,000.

Manufacturing overhead applied, P3,600,000.

Manufacturing overhead was applied to production at a rate of 200% of direct labor

costs.

The peso amount of work in process inventory on January 1, 2019.

Required:

1. Determine the total direct labor cost in 2019.

2. Determine the total cost of direct materials used in 2019.

3. Compute the peso amount of work in process on December 31, 2019.

Problem 02

TEST I- Using the data presented below, determine the figures that should be inserted in the blank spaces.

Beginning units in process

a. 700

b. _____

c. 1,200

d. 1,000

e.2,200

Units started in production Units transferred to finished goods Ending units in process

a. 3,200

b.2,300

c. 4,500

d. ______

It is. _______

Units transferred to finished goods

a. _______

b. _______

c. 5,100

d. 8,200

e.2,400

Ending units in process

a. 600 - 1/3 completed

b. 400 - 1/2 completed

c. ______________________

d. ____ - 1/2 completed

e. 500 - 4/5 completed

Equivalent units of production

a. _____

b. 2,450

c. 5,500

d. 8,800

It is. _____

TEST II The following information is available for Mind Focus Co. for the month of May:

Started this month 80,000 units

Beginning work in process (40%) 7,500 units

Normal spoilage (discrete) 1,100 units

Abnormal spoilage 900 units

Ending work in process (70%) 13,000 units

Transferred out 72,500 units

Beginning work in process- Cost:

Materials P 10,400

Conversion 13,800

Costs this month:

Materials 120,000

Conversion 350,000

All materials are added at the start of the process and the inspection point is at the end of the process.

1. What are the equivalent units of production for materials using FIFO?

2. What are the equivalent units of production for conversion costs using FIFO

3. What are the equivalent units of production for materials using weighted average?

4. What are the equivalent units of production for conversion costs using weighted average?

5. What is the cost per equivalent unit for materials using FIFO?

6. What is the cost per equivalent unit for conversion using FIFO?

7. What is the cost per equivalent unit for materials using weighted average?

8. What is the cost per equivalent unit for conversion costs using weighted average?

9. What is the cost assigned to ending inventory using FIFO?

10. What is the cost assigned to abnormal spoilage using FIFO?

11. What is the cost assigned to normal spoilage using weighted average?

12. What is the total cost assigned to goods transferred out using weighted average?

TEST III- A company manufactures a product that passes through two production departments, Molding and Assembly. Direct materials are added in the Assembly Department when conversion is 50% complete. Conversion costs are incurred uniformly. The activity in units for the Assembly Department during April is as follows:

Work in process, April 1 (60% complete to conversion) 5,000

Transferred in from Molding Department 32,000

Defective at final inspection (within normal limits) 2,500

Transferred out to finished goods inventory 28,500

Work in process, April 30 (40% complete to conversion) 6,000

The number of equivalent units for direct materials in the Assembly Department for April calculated on the weighted average basis is __________.

TEST IV-Achievers, Inc. uses a process costing system to accumulate costs related to silk scarf

production. Selected data for scarf production for last quarter is provided below:

Materials Conversion

Unit cost, FIFO method ? (1) ? (2)

FIFO equivalent units 4,200 4,500

Cost in beginning work in process P 630 P 270

Total cost to be accounted for P24,780 P ? (3)