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Quiz 3 Cost Accounting

This document contains 4 problems involving calculating inventory, costs of goods sold, and net income for various manufacturing companies. Problem 1 provides journal entries and a cost of goods sold statement. Problem 2 calculates prime cost, conversion cost and cost of goods manufactured. Problem 3 computes direct materials used and net income. Problem 4 determines direct labor cost and ending work in process inventory.

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Rocel Domingo
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375 views2 pages

Quiz 3 Cost Accounting

This document contains 4 problems involving calculating inventory, costs of goods sold, and net income for various manufacturing companies. Problem 1 provides journal entries and a cost of goods sold statement. Problem 2 calculates prime cost, conversion cost and cost of goods manufactured. Problem 3 computes direct materials used and net income. Problem 4 determines direct labor cost and ending work in process inventory.

Uploaded by

Rocel Domingo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Quiz 3

Problem 1
Karla Company had the following account balances:
Finished Goods P35,000
Work in Process 18,000
Materials 50,000
Accounts payable 10,000
Accrued payroll 8,000

During the month July 2019, the following transactions were completed:

1. Materials purchased on account, P200,000


2. Factory overhead incurred on account, P35,000
3. Payroll for the period consists of: direct labor-P140,000; indirect labor-P30,000; sales
salaries-P25,000; and administrative salaries-P15,000
Deductions from payroll were as follows:
Withholding taxes P18,520
SSS Premiums 8,400
Phil Health Contributions 1,125
Pag-ibig Funds 6,300
4. P175,000 was paid for payroll
5. Computation of employer’s payroll share expense is as follows:
Factory Selling Administrative
SSS premiums 8,500 1,250 750
Phil health 600 375 150
Pag-ibig Fund 5,100 750 450

6. Materials issued to production: direct materials – P185,000; indirect – P35,000


7. Factory overhead was charged to production at 80% of direct labor cost
8. Work finished and placed in stock P410,000
9. Cost of goods sold P385,000. The mark up was 40% of cost.
10. Cash collected from customers P405,000
11. Payment for liabilities amounted to P220,000, other than payroll

REQUIRED:
1. Journal entries to record the above transactions
2. Cost of Goods Sold statement for July 31, 2019

Problem 2

The information pertaining to Laguna Company’s manufacturing operations are as follows:


Inventories 1/1/2020 1/31/2020
Direct materials P36,000 P30,000
Work in Process 18,000 12,000
Finished Goods 54,000 72,000
Additional information for the month of January are as follows:
Direct materials purchased P84,000
Direct labor payroll 60,000
Direct labor rate per hour 7.50
Factory overhead rate/direct labor hour 10.00
COMPUTE FOR:
1. Prime cost
2. Conversion cost
3. Cost of goods manufactured

Problem 3

The account information for Maligaya Company for the period are as follows:
Direct labor P2,400
Factory overhead 1,700
Work in process inventory, beg 11,000
Work in process inventory, end 5,000
Cost of goods manufactured 16,000
Sales 50,000
Finished goods inventory, beg 9,000
Finished goods inventory, end 8,000
Selling, general and administrative costs 14,000

COMPUTE FOR:
1. Direct materials used
2. Net income

NAIDA Manufacturing Company has the following data for the current year:
Work in process inventory, Jan 1 P40,000
Direct materials used 24,000
Actual factory overhead 48,000
Applied factory overhead 36,000
Cost of goods manufactured 44,000
Total manufacturing cost 120,000

COMPUTE FOR:
1. Direct labor cost
2. Work in process inventory, Dec 31

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