You are the cost accountant of Brother Inc., a furniture manufacturer. Brother uses Material DCP-T710W which costs P8.00. The following transaction took place during the month of July 20 for receipts, issuances, and return of material DCP-T710W. The reorder point is 600 units while the reorder quantity is 1,200 units:

July        1	Beginning Balance	560
4	PO 310	1,300
10	R41	250
15	R49	1,150
16	RM48	220
19	R58	120
23	PO351	1,300
27	RS024	100
29	R61	620
30	RM56	150

 

Required: Determine the ending balance of Material DCP-T710W by updating its material ledger card.

 

Question 2

ABC Manufacturing Company provided the following data on April 30, 2019:

April factory overhead	P30,101.80
Decrease in ending inventory
Materials	2,430
Work in Process	590
Increase in ending inventory
Finished goods	1,320.40

 

The factory overhead amounts to 50% of the direct labor while the conversion cost amounts to 50% of the total manufacturing costs. What is the cost of goods manufactured?

 

Question 3

The following data pertain to Alpha Company for the month of June 2019.

Finished Goods, June 1, 2019	P290,540
Finished Goods, June 30, 2019	276,760
Cost of Goods Manufactured	805,820
Recovery Inventory write down	10,720

 

Determine the cost of goods sold to be shown in the statement of comprehensive income of Alpha Company for the month of June 2019.

 

Question 4

The purchasing manager asked you (being the cost accountant of XYZ Company) to calculate the total ordering and carrying costs of Material 123 to help him determine the economic order quantity. Based on your verification, you found out that the company orders 10,000 units for a one-year supply. Material 123 costs P1 per unit. The ordering cost is P500 while the cost to carry the inventory is 20% of the material costs. Determine the total ordering and carrying costs of Material 123.

 

Question 5

You are employed as a cost accounting supervisor at Maria Plastic Company which presented the following data for the month of May 2019:

Finished Goods, May 1, 2019	P129,640
Finished Goods, May 31, 2019	142,840
Cost of Goods Manufactured	395,440
Loss on inventory write-down	9,740

Determine the cost of goods sold to be shown in the statement of comprehensive income for the month of May 2019.